Ethereum Eyes $4,000 Despite Market Dip, Outpaces Bitcoin Performance

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In the crushingly volatile world of cryptocurrency, Ethereum experienced a sharp dip in its market value after rallying towards a promising $3,940. Temporarily taking a breather, Ethereum is now consolidating its position around the $3,850 mark, all the while eyeing greener pastures in the near future.

Previously, Ethereum rallied toward the resistance zone of $3,940. Still maintaining a position of strength, it now successfully trades well above the $3,720 line and the 100-hourly Simple Moving Average. Traders and speculators noticed a bullish trend line gradually taking shape with solid support at the $3,720 mark on the hourly chart of ETH/USD.

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An optimistic prediction is that Ethereum may continue its upward trajectory unless a break below the $3,620 support point occurs.

Despite the minor setback, Ethereum managed to extend its gains above the resistance levels of $3,700 and $3,750, showcasing a performance that outpaced even Bitcoin. For a brief period, Ethereum even reached the significant $3,880 mark, establishing a new weekly high at $3,943 before experiencing an abrupt fall.

This sudden decline saw the price plummet below the $3,800 and $3,750 levels, only to bottom out at a low of $3,530. Nevertheless, showing resilience and the tenacity inherent to the crypto market, Ethereum managed to recover from this tailspin and is now trading comfortably above the 50% Fib retracement level of the downward shift from the $3,943 high to the $3,530 low.

Analysts have noted Ethereum’s current price standing robust above $3,720 and the 100-hourly Simple Moving Average. A key bullish trend line is taking shape with solid support at the $3,720 mark on the hourly chart of ETH/USD.

Resistance now lurks close to the $3,845 mark, which is the 76.4% Fibo retracement level of the downward swing from the $3,943 high to the $3,530 low. The first significant resistance is gauged to be near the $3,880 level. A breakout above this resistance might trigger an upward trajectory for the price.

Further down the line, resistance is expected at the $3,940 mark. A clear ascension above this might add traction and push the price towards an ambitious $4,000. Any movement beyond this point could propel the price towards a resistance check at $4,080 and the potential highs of $4,200.

Could another fall in Ethereum’s price be on the horizon? If it falls short of the $3,840 resistance, it may trigger another downward correction. Initial support on the downside is determined at near the $3,720 level. A break below the $3,620 mark might nudge the price towards $3,550, with a further decline pushing it to the worrying level of $3,390.

In terms of technical indicators, the MACD for ETH/USD builds momentum in the favorable bullish zone, and the RSI for ETH/USD remains resilient above the 50 zone. Major support is seen at the $3,720 level, with significant resistance built around the $3,880 mark.