Key Takeaways:
- Ethereum surged above the $3,550 resistance post the SEC approved ETH ETFs.
- ETH/USD is now following a short-term rising channel with resistance at $4,000 on the daily chart.
- The price could correct lower, but the bulls might soon aim for a move above the $4,000 resistance.
NEW DELHI (CoinChapter.com) — Ethereum (ETH) is trading in a bullish zone above $3,720. ETH is showing positive signs and might soon rally above the $4,000 resistance.
Ethereum Price Outperforms Bitcoin
In the past few days, Ethereum saw a steady increase above the $3,550 resistance. The SEC approved ETH ETFs, sparking a strong upward move. The price rallied toward the $4,000 resistance zone. A high was formed at $3,975, and Ether mostly outperformed Bitcoin.
The price is now consolidating gains and trading well above the 50-day simple moving average (blue). It seems like the bears are defending an upside break above the $4,000 resistance. There is also a short-term rising channel forming with resistance at $4,000 on the daily chart.
The last few daily candles suggest Ethereum bulls are exhausted. Therefore, there could be a short-term downside correction below the $3,800 level. The first major support sits near the $3,720 level.
The 23.6% Fib retracement level of the recent surge from the $2,869 swing low to the $3,975 high. If there is a downside break below the $3,720 support zone, there is a risk of a larger pullback. In the stated case, the price might test the $3,600 level.
The next major support is near the 50% Fib retracement level of the recent surge from the $2,869 swing low to the $3,975 high at $3,420. A downside break and a daily close below $3,420 might send ETH toward the $3,240 support and the 50-day simple moving average (blue).
Another Surge In ETH?
Conversely, Ethereum might consolidate or correct a few points before the next surge. On the upside, immediate resistance is near the $3,950 level. The first major resistance is near the $4,000 level and the channel trend line.
A clear move above the $4,000 resistance could spark another increase. In the stated case, the price might recover and test the $4,080 resistance. The next major resistance is visible near the $4,250 level. A close above the $4,250 resistance could send Ether higher toward $4,400. If the bulls clear the $4,400 resistance, the price could visit the $4,650 resistance in the near term.
Overall, Ethereum price is consolidating gains above $3,800 and $3,720. If ETH clears the $4,000 resistance, there could be a 10% increase in the near term.
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