Ethereum Price Consolidates As The Bulls Aim For Surge Above $4K

2024-03-06 20:27:46

Ethereum price extended its increase toward $3,900. ETH is now consolidating gains and might aim for a move above the $4,000 resistance.

Ethereum traded to a new multi-month high above $3,880.
The price is trading above $3,700 and the 100-hourly Simple Moving Average.
There is a short-term bullish flag pattern forming with resistance at $3,850 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could resume its increase if it clears the $3,850 resistance zone.

Ethereum Price Aims Higher

Ethereum price extended its rally above the $3,750 level, like Bitcoin. BTC failed to extend gains above the $69,200 zone, but ETH cleared the $3,850 level.

It traded to a new multi-month high above $3,880 and recently started a consolidation phase. There was a pullback below the $3,800 level. The price tested the 23.6% Fib retracement level of the recent wave from the $3,211 swing low to the $3,898 high.

Ethereum is now trading above $3,700 and the 100-hourly Simple Moving Average. Immediate resistance on the upside is near the $3,850 level. There is also a short-term bullish flag pattern forming with resistance at $3,850 on the hourly chart of ETH/USD.

Source: ETHUSD on TradingView.com

The first major resistance is near the $3,880 level. The next major resistance is near $3,920, above which the price might gain bullish momentum. The next stop for the bulls could be near the $4,000 level. If there is a move above the $4,000 resistance, Ether could even rally toward the $4,080 resistance. Any more gains might call for a test of $4,120.

Another Decline In ETH?

If Ethereum fails to clear the $3,850 resistance, it could start another downside correction. Initial support on the downside is near the $3,740 level.

The first major support is near the $3,650 zone. The next key support could be the $3,550 zone or the 50% Fib retracement level of the recent wave from the $3,211 swing low to the $3,898 high. A clear move below the $3,550 support might send the price toward $3,400. Any more losses might send the price toward the $3,320 level.

Technical Indicators

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

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

Major Support Level – $3,650

Major Resistance Level – $3,850

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