Ethereum Price Consolidates Gains, Eyes Move Above $4,000 & Then a Drastic Fall Again?

Ethereum’s price is showed strong upward momentum, having climbed above the key $3,950 and $4,000 levels. Although ETH faced slight resistance, it remained well-positioned to target a breakout above the $4,150 resistance zone.

Key Points:

• Ethereum maintained a steady rise, surpassing the $3,950 and $4,000 resistance levels.
• The price is was at $4,000 and above the 100-hour Simple Moving Average (SMA).
• A crucial bullish trend line is taking shape, with support near $3,940 on the hourly chart of ETH/USD (data from Kraken).
• A clear move past the $4,080 and $4,120 resistance levels could trigger further gains.
• However, it remains at $3,846.99, according to the latest Binance.

Ethereum Price Action

Ethereum extended its bullish move after stabilizing above $3,880. The price surged past the $3,980 and $4,000 resistance barriers, displaying signs of strength even as it lagged behind Bitcoin’s pace.

ETH reached a peak near $4,107 before experiencing a slight pullback. This dip saw the price retreat below $4,000 and test support around $3,946. However, buyers stepped in quickly, driving the price back upward. Ethereum traded above the $4,000 mark and the 100-hour SMA.

The recent recovery also cleared the 23.6% Fibonacci retracement level of the downward move, measured from the $4,107 swing high to the $3,946 low. A key bullish trend line has also emerged, providing support near $3,940 on the hourly chart.

On the upside, immediate resistance lies near the $4,025 level. The next major hurdle is at $4,070, close to the 76.4% Fib retracement level of the recent decline.

The critical resistance now stands at $4,120. If ETH manages to break and hold above this level, it could spark a significant rally toward the $4,250 mark. A decisive move beyond $4,250 could pave the way for further gains, potentially sending Ethereum toward $4,350 or even $4,500 in the near term.

Potential Downside Scenario

Seems like Ethereum struggled to surpass the $4,120 resistance zone, facing another downward correction already. Initial support is located near the $3,980 level. This level failed to hold with the next major support sits near $3,850, in line with the trend line support.

A clear drop below the $3,940 level intensified bearish pressure, pulling the price toward $3,850. Further losses may lead Ethereum to test the $3,800 support zone, with the next significant support near $3,750.

Key Levels to Watch

In summary, Ethereum’s price is consolidating critical support levels and showing signs of continued bullish momentum or drastic downfall. Once a successful breakout hits above $4,120 again could set the stage for further upward moves, while failure to hold above this level may trigger a downside correction toward $3,800 or lower.