Technical Analysis: Ethereum Rises Above $4,000 Again!

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Ethereum (ETH), the second largest cryptocurrency by market cap, has gained over 5% in the last 24 hours and the price has rallied above $4,000 against the US Dollar. Any further increase in Ethereum expected?

Ethereum gained momentum for a move above the $3,850 and $3,920 resistance levels.

The price is trading above $4,000 and the 100 hourly simple moving average.

There was a break above a key bearish trend line with resistance near $3,840 on the hourly chart of ETH/USD.

The pair could start a fresh increase if it stays above the $3,920 support and the 100 hourly SMA.

Ethereum Price Gains Momentum

Popular altcoin Ethereum started a steady recovery wave above the $3,800 and $3,850 resistance levels. ETH managed to gain momentum after a close above the $3,850 level and pushed the price above $4,000.

Besides, there was a break above a key bearish trend line with resistance near $3,840 on the hourly chart of ETH/USD. The bulls are currently attempting to push Ethereum price above the 50% Fib retracement level of the low from the $4,175 low to $3,666 low.

On the other hand, ETH also tested the $4,050 resistance zone yesterday evening and Ethereum price is now trading above $4,000 and the 100 hourly simple moving average.

Considering the critical levels to watch in Ethereum, the next major resistance is near the $4,080 level. A clear move above the $4,080 level in the popular altcoin could trigger a fresh increase in the near term. The bulls, on the other hand, could aim $4,150 as the next target.

Also, a close above the $4,150 level is likely to push the price towards the $4,250 level. In the stated case, Ethereum could start an increase towards the $4,350 level.

More Drops Possible in ETH?

However, if Ethereum fails to start a fresh increase above the $4,050 level, it could start a downside correction. An initial support on the downside is near the $3,960 level while the key support is currently forming near the $3,920 level and the 100 hourly simple moving average.

A possible break below the $3,920 support could increase losses in Ethereum price. The next major support is $3,880, below which the bears are likely targeting a test of $3,750.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly losing momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is still well above the 50 level.

Major Support Level: $3,920

Major Resistance Level: $4,050