Title: Brace Yourself for the Next Ethereum Price Surge as Bulls Eye $4,000 Resistance
Ethereum (ETH) continues to exhibit a bullish trend, currently trading above $3,720, and showing promising signs of a potential rally beyond the $4,000 resistance level.
Over the past few days, Ethereum has experienced a steady upward movement, surpassing the $3,550 resistance level. This surge was further fueled by the approval of ETH ETFs by the SEC, causing the price to rally towards the $4,000 resistance zone. Notably, Ethereum outperformed Bitcoin during this period.
Currently, the price is consolidating its gains and remains comfortably above the 50-day simple moving average (blue). However, the bears are putting up a strong defense against a breakthrough above the $4,000 resistance level. On the daily chart, a short-term rising channel with resistance at $4,000 is taking shape.
While recent daily candles suggest that Ethereum bulls may be exhausted, a minor downside correction below the $3,800 level could occur. The first significant support lies near the $3,720 level, which coincides with the 23.6% Fibonacci retracement level of the recent surge from the $2,869 swing low to the $3,975 high. A break below this support zone could indicate the possibility of a larger pullback, potentially testing the $3,600 level.
If the downward momentum persists, the 50% Fibonacci retracement level at $3,420 becomes the next major support, followed by the $3,240 support and the 50-day simple moving average (blue). However, if Ethereum consolidates or corrects slightly, it could be poised for another surge.
On the upside, immediate resistance lies near the $3,950 level, with the first major resistance being the $4,000 level and the trend line of the channel. A decisive breakthrough above the $4,000 resistance level has the potential to trigger another price increase. In this scenario, the price might recover and test the $4,080 resistance, followed by the next major resistance near the $4,250 level. A successful breach of the $4,250 resistance could propel Ether higher towards $4,400. If the bulls manage to surpass the $4,400 resistance, the price may even reach the $4,650 resistance in the near future.
In summary, Ethereum is currently consolidating its gains above the $3,800 and $3,720 levels. A successful breakthrough above the $4,000 resistance could result in a significant 10% surge in the short term.