Recently, Ethereum has shown an impressive performance that has pleased its investors. Of course, the ETF news has had an impact on this. As one of the leading names in the cryptocurrency market, ETH tested a significant resistance point by pushing its price up to $3,840. It seems that Ethereum is steadily progressing towards the $4,000 level while maintaining its gains.
Ethereum Initiates New Uptrend
Ethereum recently started a new uptrend, trading above the $3.750 resistance zone. The price is currently staying above $3,700. The hourly chart of the ETH/USD pair shows a short-term uptrend line forming with support at $3,710.
This rise in Ethereum’s price came after reports of increased hopes for an ETH ETF. This positive development allowed the price to surpass the resistance levels of $3,500 and $3,650. Ethereum outperformed Bitcoin by rising above the $3,750 level and reaching a new weekly high of $3,838.
Critical Resistance Levels
The immediate resistance level for Ethereum is near $3,840. If this level is surpassed, the first major resistance is at $3,880. If Ethereum breaks above this resistance, the price could move even higher. The next key resistance level is at $3,950, and surpassing this level could see the price rise towards $4,000.
If there is a clear move above the $4,000 level, Ethereum’s price could increase further and test the $4,080 resistance. Surpassing this resistance level could send ETH towards the $4,200 resistance zone, opening new profit opportunities for investors.
Levels to Watch for Downward Signals in ETH
Recent analyses indicate that if ETH fails to surpass the $3,840 resistance, it could enter a downward correction phase. Looking at Ethereum’s price movements, the first significant support level is at $3,710. This level is also quite close to the trend line. If the $3,710 support is broken, the next major support level is at $3,620.
A clear move below the $3,620 support could pull the price down to $3,450. If the $3,620 support level also fails to hold, Ethereum could lose more value and retreat to the $3,380 level. This situation presents an important risk factor that investors should pay attention to in the short term.
What Do Technical Indicators Say?
Technical indicators provide important clues about Ethereum’s current state. On the hourly chart, the MACD (Moving Average Convergence Divergence) indicator for the ETH/USD pair shows gaining momentum in the bullish zone. This could indicate a short-term recovery possibility.
However, the hourly RSI (Relative Strength Index) is another indicator that needs to be watched closely. The RSI is currently correcting from the 75 region. This correction indicates an exit from the overbought zone, which could also signal potential selling pressure.
