Popular altcoin Ethereum gained momentum for a move above the $4,000 zone against the US Dollar, with the surge in the past day and the price managed to climb as high as $4,155.
Ethereum managed to surpass the $4,000 and $4,050 resistance levels.
The price is trading well above $4,000 and the 100 hourly simple moving average.
There was a break above a key contracting triangle with resistance near $3,960 on the hourly chart of ETH/USD.
The pair must stay above $4,000 to continue rising in the near term.
Ethereum Takes Action! Price Rebounds
Ethereum, the second largest cryptocurrency by market cap, has formed a base above the $3,900 level to start a fresh increase. However, ETH managed to rally above the critical $4,000 resistance area and the 100 hourly simple moving average with the gains that started last day.
Moreover, the bulls continued to rise and pushed the price above the $4,050 and $4,080 resistance levels. There was also a break above a key contracting triangle with resistance near $3,960 on the hourly chart of ETH/USD and there was a high near $4,155. After Ethereum touched the $4,155 level, the price declined again and started a downside correction.
The popular cryptocurrency is currently trading well above $4,000 and the 100 hourly simple moving average. An initial resistance on the upside is near the $4,120 level and the next major resistance is forming near $4,150. Therefore, a clear upside break above the $4,150 level could push Ethereum price higher in the near term.
If the $4,155 level is successfully broken, the bulls’ next stop could be $4,200, above which the price could rise as high as $4,250. Any further gains could push the price as high as $4,320.
Possible Drop Scenario in ETH
However, if the stated situations do not materialize and Ethereum fails to start a fresh increase above the $4,150 level, the decline could accelerate. An initial support on the downside is near the $4,050 level, while an initial key support is currently formed near the $4,020 level.
Therefore, a downside break below the $4,020 and $4,000 levels could push the price back towards the $3,920 level.
Hourly MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level: $4,020
Major Resistance Level: $4,150