Key Takeaways:
- Ethereum is holding gains and eyeing a fresh increase toward the $4,000 resistance.
- ETH/USD still follows a key parabolic curve with support at $3,400 on the weekly chart.
- The price could accelerate higher toward $4,000 or $4,800 in the coming days.
NEW DELHI (CoinChapter.com) — Ethereum (ETH) is signaling a major uptrend above $3,500. The current price action suggests a high chance of a move to $4,500.
Ethereum Price Signals Fresh Rally
After trading above the $4,000 level, Ethereum price started a downside correction like Bitcoin. ETH declined below the $3,880 and $3,800 support levels. The bears were able to push the price below the $3,500 level.
There was a move below the 23.6% Fib retracement level of the upward move from the $2,172 swing low to the $4,082 high. However, the bulls took a strong stand near the $3,120 support. More importantly, there was no weekly close below the $3,200 support.
Ethereum tested the 50% Fib retracement level of the upward move from the $2,172 swing low to the $4,082 high and stayed well above the 50-week simple moving average (blue). It is still following a key parabolic curve with support at $3,400 on the weekly chart.
The last two weekly candles suggest a strong buying interest above $3,320. The price is up nearly 10% today and the current price action suggests more upsides. Immediate resistance is near the $3,800 level.
If Ethereum’s price clears the $3,800 resistance, it could open the doors for a move toward the $4,080 high. A close above the $4,080 level could initiate a move toward the $4,500 resistance or a new all-time high in the coming weeks. The next major barrier could be $5,000.
Another Drop In ETH?
If not, ETH might start another pullback from $3,800 or $4,000. On the downside, many supports are forming. Immediate support is near the $3,500 pivot level. The first support is at $3,400 and the curve region.
A weekly close below $3,400 might spark strong bearish moves in ETH. In the stated case, the bears might aim to move toward the $2,620 support zone. Any more losses might send the price toward the 50-week simple moving average (blue) at $2,200.
Overall, Ethereum price is holding gains above the $3,400 level. If the bulls remain active above $3,400, ETH might soon rally past $4,000 to test $4,500 in the coming weeks.
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