Ethereum Gears Up for a Record High: Can It Break Through?

As a seasoned analyst with over a decade of experience in the crypto market, I have witnessed many bull runs and bear markets. Currently, Ethereum is showing signs of recovery, breaking above key resistance levels at $3,980 and $4,000, and consolidating gains towards the $4,150 zone.

The cost of Ethereum has begun a steady climb surpassing the $3,950 level. Currently, Ethereum is holding its gains and may attempt to break through the resistance at $4,150.

  • Ethereum started a decent increase above $3,950 and $4,000.
  • The price is trading below $3,980 and the 100-hourly Simple Moving Average.
  • There is a key bullish trend line forming with support at $3,940 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could continue to move up if it clears the $4,080 and $4,120 resistance levels.

Ethereum Price Regains Momentum

The cost of Ethereum held steady and built on its growth surpassing $3,880, yet it fell short compared to Bitcoin‘s performance. Notably, Ethereum managed to break through the barriers at $3,980 and $4,000.

Initially, the bulls propelled the pair beyond the obstacles at $4,050 and $4,080. A peak was reached at $4,107, following which there was a temporary retreat. However, the price subsequently dipped slightly below the $4,000 mark. It sank to a low of $3,946 but is now on an upward trend.

Previously, there was an upward shift that surpassed the 23.6% Fibonacci retracement point from the peak of $4,107 to the trough of $3,946 in Ethereum’s price movement. Currently, Ethereum trades above $4,000 and is above its 100-hour Simple Moving Average. Additionally, a significant bullish trend line is developing with a support at $3,940 on the hourly ETH/USD chart.

On a positive note, it appears that the price might encounter obstacles around $4,025. The initial significant barrier lies at approximately $4,070 or the 76.4% Fibonacci retracement point from the peak of $4,107 to the trough of $3,946.

Currently, the primary obstacle is appearing around $4,120. Overcoming this hurdle at $4,120 might propel the price towards the next potential barrier at $4,250. If the price manages to break through the $4,250 level, it could indicate further increases in the upcoming trading periods. In such a scenario, Ether may potentially reach the resistance zone of $4,350 or even $4,500.

Downside Correction In ETH?

Should Ethereum struggle to surpass the $4,120 threshold, a potential reversal or downtrend may ensue. A preliminary line of defense on the lower end can be found around the $3,980 mark. The first substantial support appears close to the $3,940 zone.

If the price falls significantly below the $3,940 resistance point, it could potentially drop to the $3,880 support level. Further declines may lead to a slide towards the $3,800 support in the short term. The crucial support for the near future lies at $3,750.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is gaining momentum in the bullish zone.

Hourly RSIThe RSI for ETH/USD is now above the 50 zone.

Major Support Level – $3,940

Major Resistance Level – $4,120

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2024-12-17 06:22