Ethereum is up 5% and the bulls pumped the price above $4,000 against the US Dollar. ETH price could continue to rise if it stays above the $3,920 support.
Ethereum gained pace for a move above the $3,850 and $3,920 resistance levels.
The price is trading above $4,000 and the 100 hourly simple moving average.
There was a break above a key bearish trend line with resistance near $3,840 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could start a fresh increase if it stays above the $3,920 support and the 100 hourly SMA.
Ethereum Price Gains Momentum
Ethereum started a steady recovery wave above the $3,800 and $3,850 resistance levels. ETH was able to gain pace after there was a close above the $3,850 level.
The bulls push the price above the 50% Fib retracement level of the key decline from the $4,175 swing high to $3,666 low. Besides, there was a break above a key bearish trend line with resistance near $3,840 on the hourly chart of ETH/USD.
Ether price is now trading above $4,000 and the 100 hourly simple moving average. It tested the $4,050 resistance zone. The stated resistance is near the 76.4% Fib retracement level of the key decline from the $4,175 swing high to $3,666 low.
The next major resistance is near the $4,080 level. A clear move above the $4,080 level could start a fresh increase in the near term. The next stop for the bulls could be $4,150. A close above the $4,150 level may possibly spark a move towards the $4,250 level. In the stated case, it could even rise towards the $4,350 level.
Dips Supported in ETH?
If ethereum fails to start a fresh increase above the $4,050 level, it could start a downside correction. An initial support on the downside is near the $3,960 level.
The key support is now forming near the $3,920 level and the 100 hourly simple moving average. If there is a clear break below the $3,920 support, the price could extend losses. The next major support is $3,880, below which the bears are likely to aim a test of $3,750.
Technical Indicators:
Hourly MACD – The MACD for ETH/USD is slowly losing pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is still well above the 50 level.
Major Support Level – $3,920
Major Resistance Level – $4,050
