Ethereum started a fresh increase above the $3,750 level. According to technical analysis by NewsBTC’s Aayush Jindal, ETH is now struggling to gain momentum above the $3,850 zone.
Ethereum Begins A New Rise
Ethereum formed a bottom above $3,600 and started a fresh increase. There was a clear move above the $3.800 level and the 100 hourly simple moving average. A new weekly high was formed around $3,854 and is now consolidating gains. There was a minor decline below the $3,840 and $3,820 levels. It is currently trading around $3,807.
An immediate upside resistance is near the $3,820 level. The next major resistance is near the $3,850 level. A clear upside break above the $3.850 level could push the price higher towards $4,000. Any further gains could send the price towards the $4,120 level. The main resistance is near the $4,200 level.
Will Ethereum Drop?
According to Jindal, if Ethereum fails to start a fresh increase above the $3,850 level, it could start a downside correction. An initial support on the downside is near the $3,780 level or the trend line. If the first key is support, it is now forming near $3,865 and the 100 hourly SMA. A downside break below the 100 hourly SMA could put a lot of pressure on the bulls. In the stated case, the price could decline to the $3,740 support zone in the near term. This is close to the 50% Fib retracement level of the recent rise from the $3,622 low to $3,854 high.
What Do Technical Indicators Say?
- Hourly MACD – The MACD for ETH/USD is now losing momentum in the bullish zone.
- Hourly RSI – The RSI for ETH/USD is close to the 50 level.
- Main Support Level – $3,750
- Main Resistance Level – $3.850