Ethereum price has begun a consolidation phase above the $3,650 support, and ETH seems to be gearing up for its next rise towards $4,000 in the short term.
- Ethereum began consolidating after testing the $3,840 resistance zone.
- The price is trading above $3,700 and the 100 hourly simple moving average.
- On the hourly chart of ETH/USD (data feed via Kraken), a short-term contract triangle is forming with $3,690 as support.
- The pair is likely to continue rising unless it breaks below the $3,450 support.
Ethereum Price Holds Support
The price of Ethereum continued to rise above the resistance levels of $3,500 and $3,650. ETH outperformed Bitcoin and rose above the $3,800 level. A new weekly high was formed at $3,838 and the price is currently consolidating gains.
It has held gains above the 23.6% Fib retracement level of the move from the swing low of $3,065 to the high of $3,838. Ethereum is currently trading above $3,700 and the 100 hourly simple moving average. Also, the hourly chart of ETH/USD is showing a short-term contracting triangle forming with support at $3,690.
The immediate resistance is near $3,780. The first major resistance is near $3,840. If the price can break above the $3,840 resistance, it can move higher. The next major resistance is at $3,920, above which the price can gain momentum and move towards the $4,000 levels.
If there is a clear move above the $4,000 level, the price could move higher and test the $4,080 resistance. Any further rally could send Ether heading toward the $4,200 resistance zone.
Will ETH's decline continue?
If Ethereum fails to clear the resistance at $3,780, a correction can begin on the downside. The first support on the downside is near the $3,690 level and the trendline.
The next major support is near $3,650. A clear break below the $3,650 support could push the price to $3,450, or the 50% Fibonacci retracement level of the rise from the $3,065 swing low to the $3,838 high. Any further losses could push the price to the $3,360 level in the near term.
Technical Indicators
Hourly MACD – ETH/USD’s MACD is losing momentum from the bullish zone.
Hourly RSI – ETH/USD’s RSI remains above the 75 zone.
Major Support Level – $3,650
Major Resistance Level – $3,840
