Ethereum’s valuation encounters a formidable barrier, as attempts to breach the $4,000 resistance zone continue to falter. It’s anticipated that ETH may enter a period of consolidation, holding the fort above the $3,600 mark as the cryptocurrency’s advocates muster their strength.
The digital currency recently carved a fresh multi-month zenith, cresting above $3,980, imbuing the market with a fleeting optimism. At present, Ethereum’s price hovers near $3,850, shadowing the 100-hourly Simple Moving Average—a guardian of the status quo in the constantly shifting markets.
Indicators on the hourly chart of ETH/USD suggest a burgeoning breakout pattern with resistance lying at the $3,950 threshold. A sustained hold above $3,800 might embolden Ethereum to mount another upward charge. The immediate challenge that looms is at the $3,900 level, with the subsequent barrier arrayed at $3,940.
Breaking past these climes, a rally to $4,120 is within the realm of possibility, painting a bullish narrative for the digital asset. A surge above this level could set Ethereum on a trajectory toward the $4,220 benchmark, and beyond that, a potential test of $4,350 beckons.
On the flipside, should Ethereum stall at the $3,950 standoff, a downward correction might be on the cards. The initial buffer against decline nestles at $3,800, with the $3,600 domain—a 50% Fibonacci retracement level—serving as a bulwark of major support. A breach below $3,400 could see Ethereum’s valuation take a tumble toward $3,250, and possibly further to the $3,120 vicinity.
As for technical beacons, the Hourly MACD’s dwindling vigor in the bullish zone should give pause to the exuberant, while the RSI for ETH/USD has sunk beneath the midline of 50, signaling a moderation of upward momentum.
Support and resistance levels are etched into the market’s consciousness at $3,800 and $3,950 respectively, markers that traders and algorithmic sentinels alike will watch with keen interest.
