Why Ethereum Bulls Aim Fresh Rally Above $4K

Ethereum is holding gains above the $3,800 level against the US Dollar. ETH price is struggling near $3,880, but it could accelerate higher unless the bulls fail to protect $3,680.

  • Ethereum started another decline from the $3,880 resistance zone.
  • The price is trading above $3,800 and the 100 hourly simple moving average.
  • There is a key bullish trend line forming with support near $3,800 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair must clear the $3,880 zone to start a fresh increase in the near term

Ethereum Price Remains Supported

Ethereum made another attempt to gain strength above the $3,850 level. ETH spiked above $3,880, but there was no upside continuation. A high was formed near $3,891 before there was a downside correction.

The price declined below the $3,850 and $3,820 levels. Besides, there was a break below the 50% Fib retracement level of the upward move from the $3,681 swing low to $3,891 high. However, the bulls were active near the $3,750 zone and the 100 hourly simple moving average.

It found support near the 61.8% Fib retracement level of the upward move from the $3,681 swing low to $3,891 high. There is also a key bullish trend line forming with support near $3,800 on the hourly chart of ETH/USD.

Ethereum Price

Source: ETHUSD on TradingView.com

Ether price is now trading above $3,800 and the 100 hourly simple moving average. An immediate resistance is near the $3,850 level. The next major resistance is near the $3,880 level. A clear upside break above the $3,880 level could pump the price towards $4,000. Any more gains could send the price towards the $4,120 level. The next main resistance is near the $4,250 level.

Downside Break in ETH?

If ethereum fails to start a fresh increase above the $3,850 level, it could continue to move down. An initial support on the downside is near the $3,800 level.

The first key support is now forming near the $3,740 level. A downside break below the $3,740 level might lead the price towards the key $3,680 support in the near term. The next major support is near the $3,600 level.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is now losing pace in the bearish zone.

Hourly RSIThe RSI for ETH/USD is above the 50 level.

Major Support Level – $3,740

Major Resistance Level – $3,850

Source: https://www.newsbtc.com/analysis/eth/ethereum-bulls-aim-fresh-rally-4k/