Ethereum Price Analysis: Climbing Towards $4,000?
Ethereum (ETH) is exhibiting bullish signals, recovering from the $3,500 support and aiming for a decisive break above $3,700. After a brief dip below $3,600, the price has rebounded, surpassing both the $3,600 and $3,620 levels. This surge followed a break above a crucial bearish trend line on the hourly chart (Kraken data).
Technical Indicators Point Upward:
- Hourly MACD: Shows increasing bullish momentum.
- Hourly RSI: Currently above the 50 level, indicating bullish strength.
- Fibonacci Retracement: The price has cleared the 50% retracement level of the recent decline.
Climbing the Resistance Ladder:
The immediate hurdle lies near $3,680, followed by the major resistance at $3,700 (coinciding with the 76.4% Fibonacci retracement). A decisive break above $3,700 could propel ETH towards $3,750, and further to $3,880. A strong push beyond $3,880 might open the door to $4,000 and even $4,120 in the near term.
Potential Downsides:
Failure to break through $3,700 could trigger another decline. Support levels are situated around $3,600, $3,550, $3,500, and $3,420. A drop below $3,550 could lead to further losses towards $3,350.
Key Levels to Watch:
- Major Support: $3,600, $3,550
- Major Resistance: $3,700, $3,750, $3,880
Disclaimer: This analysis is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are inherently volatile and involve significant risk. Always conduct thorough research and consider your risk tolerance before making any investment decisions.