Ethereum Surges Past $4,000: Bulls Take Charge Amid Key Resistance Tests
Ethereum (ETH) has embarked on a significant recovery, pushing its price decisively above the $4,000 threshold. This upward momentum reflects renewed market optimism, with buyers demonstrating a strengthened grip. However, the popular cryptocurrency now faces crucial resistance levels that will be pivotal in determining its near-term price direction.
Ethereum's Steady Gains and Upcoming Challenges
Following a minor recovery from the $3,880 zone, Ethereum price successfully surpassed the $4,000 and $4,050 levels, establishing a short-term positive trend. The asset even spiked to a high of $4,225 before entering a period of consolidation. Currently, ETH maintains its position above $4,150 and the 100-hourly Simple Moving Average, benefiting from a bullish trend line offering support at $4,050 on the hourly chart. For this bullish trend to continue, Ethereum must overcome immediate resistance levels. The first significant hurdles are found near $4,220 and $4,250. A successful breakout above the $4,320 mark could propel the price towards $4,450, with further gains potentially leading to the $4,500 or even $4,550 resistance zones in the short term.
Potential Downside Risks and Key Support Levels
Despite the current optimistic outlook, the possibility of a downturn remains. Should Ethereum fail to breach the $4,220 resistance, it could trigger a fresh decline. Initial support on the downside is anticipated around $4,150, with a more substantial support zone near $4,120. A sustained move below $4,120 might push the price towards $4,050, and further losses could see it retesting the $4,000 region. The next critical support level in such a scenario would be $3,880.
Technical Outlook
Technical indicators are largely supporting the current bullish sentiment. The Hourly Moving Average Convergence Divergence (MACD) for ETH/USD is showing increasing momentum within the bullish zone. Similarly, the Hourly Relative Strength Index (RSI) for ETH/USD is holding strong above the 50 mark, indicating healthy buying pressure. Key levels to watch include a major support at $4,120 and a major resistance at $4,220.
