Ethereum price started a consolidation phase above the USD 3,650 support. ETH seems to be preparing for the next step towards $4,000 in the short term.
- Ethereum started a consolidation after testing the USD 3,840 resistance zone.
- The price is trading above USD 3,700 and the 100-hourly Simple Moving Average.
- A short-term contract triangle is forming with support at $3,690 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue to rise unless there is a break below the $3,450 support.
Ethereum price holds support
Ethereum price extended its rise above the USD 3,500 and USD 3,650 resistance levels. ETH outperformed Bitcoin and even climbed above the USD 3,800 level. A new weekly high was made at $3,838 and the price is now consolidating gains.
It is holding gains above the 23.6% Fib retracement level of the upward move from the $3,065 swing low to the $3,838 high. Ethereum is now trading above $3,700 and the 100-hourly Simple Moving Average. A short-term contracting triangle is also forming with support at $3,690 on the hourly chart of ETH/USD.
The immediate resistance is near the $3,780 level. The first major resistance is around the $3,840 level. An upside break above the USD 3,840 resistance could send the price higher. The next major resistance is at USD 3,920, above which the price could gain strength and rise towards the USD 4,000 level.
If there is a clear move above the USD 4,000 level, the price could rise and test the USD 4,080 resistance. Even more gains could send Ether towards the USD 4,200 resistance zone.
Disadvantage of pause in ETH?
If Ethereum fails to clear the USD 3,780 resistance, it could initiate a downward correction. The initial downside support is near the $3,690 level and the trendline.
The next major support is near the $3,650 zone. A clear move below the $3,650 support could push the price towards $3,450 or the 50% Fib retracement level of the upward move from the $3,065 swing low to the $3,838 high. Any further losses could send the price towards the USD 3,360 level in the near term.
Technical indicators
hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.
RSI per hour – The RSI for ETH/USD is still above the 75 zone.
Major support level – $3,650
Major resistance level – $3,840