Ethereum Price (ETH) On The Path To Rally Past $4K

2024-03-07 22:58:44

Ethereum price extended its increase toward $3,950. ETH is now consolidating gains and might aim for a move above the $4,000 resistance.

Ethereum traded to a new multi-month high above $3,940.
The price is trading above $3,850 and the 100-hourly Simple Moving Average.
There was a break above a short-term bullish flag pattern with resistance at $3,830 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could resume its increase if it clears the $3,940 resistance zone.

Ethereum Price Remains In Strong Uptrend

Ethereum price extended its rally above the $3,850 level, unlike Bitcoin. BTC failed to extend gains above the $68,000 zone and is now consolidating gains. However, ETH silently moved higher above $3,850.

There was a break above a short-term bullish flag pattern with resistance at $3,830 on the hourly chart of ETH/USD. The pair broke the $3,900 resistance zone. It traded to a new multi-month high above $3,940 and recently started a consolidation phase.

There was a pullback below the $3,900 level. The price tested the 23.6% Fib retracement level of the recent increase from the $3,716 swing low to the $3,943 high.

Ethereum is now trading above $3,850 and the 100-hourly Simple Moving Average. Immediate resistance on the upside is near the $3,920 level. The first major resistance is near the $3,940 level. The next major resistance is near $4,000, above which the price might gain bullish momentum.

Source: ETHUSD on TradingView.com

The next stop for the bulls could be near the $4,080 level. If there is a move above the $4,080 resistance, Ether could even rally toward the $4,220 resistance. Any more gains might call for a test of $4,350.

Are Dips Limited In ETH?

If Ethereum fails to clear the $3,940 resistance, it could start another downside correction. Initial support on the downside is near the $3,850 level.

The first major support is near the $3,800 zone or the 76.4% Fib retracement level of the recent increase from the $3,716 swing low to the $3,943 high. The next key support could be the $3,720 zone. A clear move below the $3,720 support might send the price toward $3,550. Any more losses might send the price toward the $3,400 level.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now above the 50 level.

Major Support Level – $3,720

Major Resistance Level – $3,940

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