Ethereum Eyes $4000 Mark in Bullish Surge, Outshines Bitcoin

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In the ever-fluctuating world of cryptocurrency, Ethereum is making notable strides upwards. The digital currency has embarked on a consolidation phase, comfortably anchored above the substantial $3,650 support level. It exhibits a steady assurance, signaling preparatory paces towards an imminent target of $4,000.

The consolidation phase was initiated after Ethereum boldly tested the waters of the sturdy $3,840 resistance zone. The digital asset has since been trading at a confident level above $3,700, securely positioned over the 100-hourly Simple Moving Average. In addition, a short-term contracting triangle reveals itself, ably buttressed by a support resting at $3,690. These transpiring events find their grounding in the hourly chart of ETH/USD, data supplied by Kraken. The harmonious pairing of Ethereum and US dollar could inch further upward unless the $3,450 support relents to a potential break.

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The Ethereum price has stretched its influence beyond the $3,500 and $3,650 resistance levels in an impressive climb. It has managed to outshine Bitcoin, with its ascension taking it past the $3,800 mark. Ethereum’s triumph crowns the week with a new high seated at $3,838. Presently, it’s engaging in a strategic consolidation of these notable gains.

It has held fast to the advantage over the 23.6% Fib retracement level of the positive shift from the $3,065 swing low to the triumphant $3,838 high. As Ethereum trades above the respected $3,700 level and the 100-hourly Simple Moving Average, a contracting triangle suggests itself, taking support at $3,690 on the hourly chart of ETH/USD.

Looking ahead, immediate resistance presents itself near the $3,780 mark while the first major obstacle appears around the $3,840 level. If Ethereum is able to charge past the $3,840 resistance, investors might witness the price soaring even higher. The prominent hurdle standing at $3,920 could be the gatekeeper to an upward surge towards the lucrative $4,000 level.

Should Ethereum display the audacity to exceed the $4,000 level, it may forge ahead to test the resistance set at $4,080. An additional climb could even chart a trail towards the formidable resistance zone of $4,200.

On the other hand, a potential downturn awaits if the digital currency fails to rise above the pressing $3,780 resistance. A downside correction could be on the horizon, with the first line of support near the $3,690 level and the trend line. Subsequently, major support is established in the $3,650 area. A drop below the $3,650 support point might precipitate a further plunge towards $3,450 or a 50% Fib retracement level from the swing low of $3,065 to the stratospheric $3,838 high. A further decline could cause the price to slide towards the $3,360 level in the coming days.

Technical analysis offers other clues about the currency’s trajectory. The MACD for ETH/USD hints at momentum fading in the bullish zone, while the RSI for ETH/USD remains resiliently north of the 75 zone. Ongoing support and resistance levels are pegged at significant marks of $3,650 and $3,840, respectively.