Key Takeaways:
- Ethereum is holding gains above the $3,700 support zone.
- ETH/USD cleared a short-term contracting triangle with resistance at $3,800 on the daily chart.
- The price could gain bullish momentum once it clears the $4,000 resistance zone.
NEW DELHI (CoinChapter.com) — Ethereum (ETH) is again moving higher above $3,800. ETH might surge over 10% if it settles above the $3,950 and $4,000 levels.
Ethereum Price Eyes More Upsides
After a strong rally after the ETH ETF approval, the bears defended more upsides above the $4,000 resistance. Ethereum saw a minor pullback from the $3,975 zone like Bitcoin. The price dipped below the $3,920 and $3,880 levels.
ETH tested the 23.6% Fib retracement level of the upward move from the $2,870 swing low to the $3,975 high. However, the bulls were active above the $3,700 zone and the price remained well above the 50-day simple moving average (blue).
Recently, Ethereum started another increase from the $3,700 zone. There was a move above the $3,780 and $3,800 resistance levels. Besides, it cleared a short-term contracting triangle with resistance at $3,800 on the daily chart.
These are positive signs and suggest a high chance of more upsides. On the upside, immediate resistance is near the $3,900 level. The first major resistance is near the $3,950 level.
The main resistance could be $4,000. 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 successful daily close above the $4,250 resistance could send Ether toward $4,400. Any more gains might initiate a move toward the $5,000 zone in the near term.
Another Downside Correction In ETH?
Conversely, Ethereum might start another downside correction. The first major support sits near the $3,700 level. If there is a downside break below the $3,700 support zone, there is a risk of a larger pullback. In the stated case, the price might test the $3,550 level.
The next major support is near the 50% Fib retracement level of the upward move from the $2,870 swing low to the $3,975 high at $3,420. A downside break and a daily close below $3,420 might call for a test of the $3,300 support and the 50-day simple moving average (blue).
Overall, Ethereum price is holding gains above $3,720 and $3,700. If ETH clears the $4,000 resistance, there could be a fresh surge in the near term.
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