Key Takeaways:
- Ethereum is holding gains above the $3,440 support zone.
- ETH/USD seems to be forming a bullish flag pattern with resistance at $3,720 on the daily chart.
- The price could gain bullish momentum once it clears the $3,800 resistance zone.
NEW DELHI (CoinChapter.com) — Ethereum (ETH) is showing bullish signs above $3,400. ETH is outperforming Bitcoin and might soon resume its increase above $3,800.
Ethereum Price Holds Uptrend Support
Earlier this month, Ethereum struggled to clear the $3,950 and $4,000 resistance levels. As a result, there was a pullback like Bitcoin, and ETH declined from the $3,973 swing high. There was a move below the $3,800 support zone.
The price declined below the 23.6% Fib retracement level of the upward wave from the $2,860 swing low to the $3,973 high. Finally, the price spiked below the $3,500 support zone, but the bulls were active near the 50-day simple moving average (blue).
There was a strong bullish reaction from the 50-day simple moving average (blue) and the 50% Fib retracement level of the upward wave from the $2,860 swing low to the $3,973 high.
A shooting star pattern was also formed near $3,440. The price recovered some losses and climbed above the $3,550 resistance. These are all positive signs and suggest a high chance of more upsides. On the upside, immediate resistance is near the $3,640 level. The first major resistance is near the $3,700 level.
There is also a bullish flag pattern forming with resistance at $3,720 on the daily chart. A clear move above the flag resistance might call for a move to $3,800.
If Ethereum bulls push the price above the $3,800 resistance, there could be a drift toward the main hurdle at $4,000. A daily close above the $4,000 resistance could spark another increase. In the stated case, the price might climb toward the $4,250 resistance. Any more gains might initiate a move toward the $5,000 zone in the near term.
More Downsides In ETH?
Conversely, Ethereum might struggle to rise above the $3,700 and $3,720 resistance levels. In the stated case, it could resume its slide. The first major support sits near the $3,420 level and the 50-day simple moving average (blue).
If there is a daily close below the $3,420 support zone, there is a risk of a larger pullback. In the stated case, the price might test the $3,285 level. The next major support is near the $3,120 level. Any more losses might send Ether toward the $2,860 support.
Overall, Ethereum price is holding gains above $3,420. If ETH clears the $3,720 resistance, there could be a fresh surge in the near term.
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