Ethereum Poised for Further Gains as Bulls Eye Key Resistance Levels Ethereum (ETH) has embarked on a promising recovery wave, stabilizing above the $4,100 mark and now consolidating. The cryptocurrency is showing signs of strength, with analysts closely watching critical resistance levels that could propel it to new highs and extend the current rally.
Ethereum Price Eyes Upside Break
Following a robust recovery similar to Bitcoin, Ethereum successfully breached resistance levels at $4,150 and $4,200. The asset even spiked briefly towards $4,240 before a minor pullback, demonstrating underlying bullish sentiment. Currently, ETH is trading above $4,160 and the 100-hourly Simple Moving Average, supported by a significant bullish trend line at $4,120 on its hourly chart. If this momentum is sustained and ETH settles decisively above the $4,220 and $4,240 resistance zones, it could initiate a strong upward movement. The next major resistance is anticipated around $4,280, with a successful break here potentially opening the path towards $4,320, and even $4,450 or $4,500 in the near term.
Potential Downside Risks
Despite the bullish outlook, caution remains. Should Ethereum fail to clear the $4,200 resistance, it risks a fresh decline. Immediate downside support lies near the $4,120 level and the aforementioned trend line. The first major support is identified at $4,095. A breach below this level could push the price towards $4,020, with further losses potentially driving ETH down to the $3,920 region, and subsequent support at $3,840. Traders are advised to monitor these levels closely for shifts in market dynamics.
Technical Indicators Signal Bullish Momentum
Key technical indicators are currently supporting a positive trajectory for Ethereum. The Hourly Moving Average Convergence Divergence (MACD) for ETH/USD is showing increasing bullish momentum within the positive zone. Similarly, the Hourly Relative Strength Index (RSI) for ETH/USD is comfortably above the 50 mark, indicating a healthy buying interest. The major support level is noted at $4,120, while the critical major resistance level stands at $4,240.
