The price of Ethereum, the world’s second-largest cryptocurrency by market cap, is displaying a bullish trend, showing signs of an upward trajectory from the $3,550 zone. The digital currency has shown resilience, maintaining a positive stance and remaining consistently above the $3,650 zone.
At the time of writing, Ethereum is being traded above $3,750, comfortably above the 100-hourly Simple Moving Average (SMA). This is an encouraging sign for investors and traders alike, as the SMA is a critical tool used by traders to analyze price trends and potential market reversals.
On the Ethereum/USD hourly chart (data feed via Kraken), there is a key bullish trend line forming with support at $3,800. This bullish trend line could be a pivotal point for Ethereum, indicating that the digital currency’s price could continue to rise if it surmounts the $3,880 resistance zone.
Ethereum started its upward journey after staying well-supported above the $3,650 support zone. Following in the footsteps of Bitcoin, Ethereum’s price rose above $3,700, with the bulls pushing the price past the $3,800 resistance level. A significant high was formed at around $3,895, further solidifying the positive outlook for Ethereum.
However, Ethereum faces some obstacles on its upward trajectory. The currency is currently encountering resistance at the $3,895 level, with major resistance hovering around the $3,920 and $3,950 levels. If Ethereum manages to clear the $3,950 resistance, it could pave the way for the price to reach the $4,000 mark. A break above this level could signal further gains in the coming sessions, potentially propelling Ethereum towards the $4,050 or even the $4,120 resistance zones.
On the other hand, if Ethereum fails to breach the $3,920 resistance, there could be a potential downturn. The first significant support on the downside is near the $3,800 level, followed closely by the $3,750 zone. A move below the $3,750 support zone could push the price towards the $3,700 support or the 50% Fib retracement level of the upward move from the $3,505 swing low to the $3,895 high. Further losses could potentially send Ethereum’s price towards the $3,650 support level in the near term, with the next critical support situated at $3,600.
The technical indicators for Ethereum are looking promising. The MACD for ETH/USD is gaining momentum in the bullish zone, and the RSI for ETH/USD is now above the 50 zone, indicating a more bullish market.
Overall, Ethereum is showing bullish signs, and the coming sessions will determine whether it can maintain this upward momentum.
