Ethereum, the second-largest cryptocurrency by market capitalization, has recently begun a promising increase above the $3,650 mark. Currently, Ethereum (ETH) appears to be on an upward trajectory, with potential aims to surpass the $3,900 resistance zone.
The digital asset initiated a respectable increase from the $3,650 and $3,680 price positions. At present, Ethereum is trading below the $3,750 mark and the 100-hourly Simple Moving Average. Significantly, the ETH/USD pair breached a crucial bearish trend line with a resistance level of $3,720, according to hourly data feed from the Kraken exchange.
As it stands, Ethereum could continue its ascent if it successfully clears the $3,850 and $3,900 resistance levels.
The Ethereum price has remained steady above $3,500, mirroring a similar fresh increase like its larger counterpart, Bitcoin. Ethereum managed a climb above the $3,650 and $3,720 resistance levels, and even spiked above the $3,800 resistance zone.
Bullish investors pushed the price above the 50% Fibonacci retracement level of the downward wave from the $4,015 swing high to the $3,488 low. The price is now trading above $3,750 and the 100-hourly Simple Moving Average. However, the price seems to be encountering resistance near the $3,850 level.
The first significant resistance is situated near the $3,890 level, or the 76.4% Fibonacci retracement level of the downward wave from the $4,015 high to the $3,488 low. The primary resistance is now forming at approximately $4,000. A clear breakthrough above the $4,000 resistance could potentially propel the price towards the $4,050 resistance level.
Should Ethereum manage an upside break above the $4,050 resistance, it could pave the way for further gains in the upcoming sessions. In this scenario, Ethereum could potentially ascend towards the $4,150 or even $4,220 resistance zones.
However, if Ethereum is unable to clear the $3,890 resistance, it could trigger another decline. Initial support on the downside lies near the $3,800 level, with the first major support positioned near the $3,750 zone.
A decisive move below the $3,750 support could push the price towards the $3,650 support. Further losses might send the price spiralling towards the $3,550 support level in the near term, with the next key support situated at $3,500.
On the technical front, the Moving Average Convergence Divergence (MACD) for ETH/USD is gaining momentum in the bullish zone, while the Relative Strength Index (RSI) for ETH/USD is now above the 50 zone. The major support level stands at $3,750, with the major resistance level at $3,890.
