Key Takeaways:
– Ethereum started a notable increase above $3,950.
– Currently, the price is trading below $3,980.
– Consolidation of gains is observed that might result in a move above the $4,150 resistance zone.
– The pair could potentially continue its upward movement if it clears $4,080 and $4,120 resistance levels.
– The primary resistance is now forming near $4,120.
The Ethereum Surge
Ethereum saw a commendable increase above $3,950 and $4,000 recently, marking an exciting development for traders across the globe. Despite ETH trading a notch below $3,980 at one point, the bullish trend line offered support at $3,940. The Ethereum-USD pair now seems poised to continue an upward trend provided it clears the resistance levels of $4,080 and $4,120.
The rise in Ethereum price was significant as it collected substantial gains over $3,880, even though its performance did not quite meet Bitcoin’s increasing trend. Climbing above the resistance levels of $3,980 and $4,000, Ethereum presented a robust trading phase to the market. The bullish phase led the resistance levels to tip over at $4,050 and $4,080, making the high reach $4,107.
Ethereum Eyes New Highs
However, this upward trajectory caused a minor pullback pushing Ethereum down below $4,000. It even traded as low as $3,946, before showing the resilience to rise again. Currently, Ethereum is observed trading over the $4,000 mark, with the price climbing over the 23.6% Fibonacci retracement level. It appears that the upward move has managed to recover from the swing low of $3,946 to the swing high of $4,107.
The upward factor hints at overcoming potential hurdles near the $4,025 mark. Provided Ethereum manages to clear the primary significant resistance near $4,070, the price could aim for the 76.4% Fibonacci retracement level. This ambitious climb could serve as the jetpack to thrust Ethereum beyond the main resistance forming near the $4,120 mark.
Potential for Downward Correction
A fascinating scene is in store for the Ethereum market if the price surpasses the $4,120 resistance level. A breakthrough like that could redirect Ethereum towards the greater resistance of $4,250. If this upward break manages to cross over $4,250, the market could anticipate even more gains. In such cases, Ethereum might ascend towards the resistance zone of $4,350 or even $4,500, marking an epoch in Ethereum trading.
Just like sunny days don’t last forever, if Ethereum fails to surpass the $4,120 resistance level, it might be due for another decline. The primary support near the $3,980 level might provide a buffer, with the main support stationed near the $3,940 zone. A fall below this level can be concerning as it would propel the price near the $3,880 support. Any further losses could potentially send Ethereum crashing towards the $3,800 support level in the imminent future.
To sum up, Ethereum has seen the winds of fortune in its direction recently. From struggling below the $3,980 mark to emerging resilient above the $4,000 level, Ethereum has covered significant ground. The currency now stands at a critical juncture, with its ability to break the $4,120 and $4,250 resistance levels being the key determinant of future gains. As we watch Ethereum navigate these decisive waters, the market eagerly awaits what could be the dawn of a prolific period.