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

Ethereum price started a decent increase above the $3,950 zone. ETH is consolidating gains and might aim for a move above the $4,150 resistance zone.

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

Ethereum price remained stable and extended gains above $3,880 but it underperformed Bitcoin. ETH was able to climb above the $3,980 and $4,000 resistance levels.

The bulls pushed the pair above the $4,050 and $4,080 resistance levels. A high was formed at $4,107 before there was a pullback. There was a minor decline below the $4,000 level. The price traded as low as $3,946 and is currently rising.

There was a move above the 23.6% Fib retracement level of the downward move from the $4,107 swing high to the $3,946 low. Ethereum price is now trading above $4,000 and the 100-hourly Simple Moving Average. There is also a key bullish trend line forming with support at $3,940 on the hourly chart of ETH/USD.

On the upside, the price seems to be facing hurdles near the $4,025 level. The first major resistance is near the $4,070 level or the 76.4% Fib retracement level of the downward move from the $4,107 swing high to the $3,946 low.

The main resistance is now forming near $4,120. A clear move above the $4,120 resistance might send the price toward the $4,250 resistance. An upside break above the $4,250 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $4,350 resistance zone or even $4,500.

Downside Correction In ETH?

If Ethereum fails to clear the $4,120 resistance, it could start another decline. Initial support on the downside is near the $3,980 level. The first major support sits near the $3,940 zone.

A clear move below the $3,940 support might push the price toward the $3,880 support. Any more losses might send the price toward the $3,800 support level in the near term. The next key support sits at $3,750.

Technical Indicators

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

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

Major Support Level – $3,940

Major Resistance Level – $4,120