Ethereum price extended its increase and tested $3,840. ETH is holding gains and seems to be eyeing a move toward the $4,000 level.

Ethereum started a fresh increase and traded above the $3,750 resistance zone.
The price is trading above $3,700 and the 100-hourly Simple Moving Average.
There is a short-term bullish trend line forming with support at $3,710 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could continue to move up unless there is a break below the $3,380 support.

Ethereum Price Eyes Additional Gains

Ethereum price started a fresh surge after reports of increased hopes of ETH ETF. There was a move above the $3,500 and $3,650 resistance levels.

ETH outperformed Bitcoin and even climbed above the $3,750 level. A new weekly high was formed at $3,838 and the price is now consolidating gains. It is trading well above the 23.6% Fib retracement level of the upward wave from the $3,065 swing low to the $3,838 high.

Ethereum is now trading above $3,700 and the 100-hourly Simple Moving Average. There is also a short-term bullish trend line forming with support at $3,710 on the hourly chart of ETH/USD.

Immediate resistance is near the $3,840 level. The first major resistance is near the $3,880 level. An upside break above the $3,880 resistance might send the price higher. The next key resistance sits at $3,950, above which the price might gain traction and rise toward the $4,000 level.

If there is a clear move above the $4,000 level, the price might rise and test the $4,080 resistance. Any more gains could send Ether toward the $4,200 resistance zone.

Are Dips Limited In ETH?

If Ethereum fails to clear the $3,840 resistance, it could start a downside correction. Initial support on the downside is near the $3,710 level and the trend line.

The next major support is near the $3,620 zone. A clear move below the $3,620 support might push the price toward $3,450 or the 50% Fib retracement level of the upward wave from the $3,065 swing low to the $3,838 high. Any more losses might send the price toward the $3,380 level in the near term.

Technical Indicators

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

Hourly RSI – The RSI for ETH/USD is now correcting from the 75 zone.

Major Support Level – $3,620

Major Resistance Level – $3,840

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Filed under: Bitcoin - @ May 22, 2024 1:58 am