Ethereum (ETH) price action is showing strength at the $3,800 mark as a target for the bulls
TLDR
Ethereum price traded above $3,550 at $3,750 and the bullish trend line at $3,800 was identified with support at $3,700. Technical indicators suggest that the positive trend is continuing and if the price breaks above $3,880 it may reach $4,000.
Ethereum's price action has shown renewed strength in recent trading sessions, pushing above the $3,700 mark as buyers took control of the market. The second-largest cryptocurrency by market capitalization has broken through several key resistance levels and established a clear upward trend.
The price action began with a sustained break above the $3,550 support zone, indicating buying pressure that could push ETH above several technical barriers. This movement reflects the broader market momentum and Bitcoin is showing similar upward trends.
Trading data from Kraken shows that Ethereum successfully breached the $3,450 and $3,550 resistance levels before continuing its climb. The discovery came with a notable trading volume, suggesting genuine buyer interest rather than temporary market volatility.
The upward movement gained particular attention when ETH crossed above the 100-hourly simple moving average, a technical indicator that traders use to gauge market direction. This crossover has historically served as a reliable signal for continued price strength.
Market participants have observed the formation of a bullish trend line establishing itself around the $3,700 level. This technical pattern appears on the hourly chart, providing traders with a clear reference point for future price action.
The latest price surge reached a local high of $3,748, after which the market entered a consolidation phase. This period of consolidation allows the market to consolidate recent gains and establish a new base for future price action.
During the minor retracement of the local high, the price found support at the 23.6% Fibonacci retracement level. This level corresponds to an uptrend that started with a swing low of $3,572 and a high of $3,748.
Looking at immediate resistance levels, traders identify $3,740 as the first hurdle that needs to be cleared. Beyond this point, the $3,750 zone represents a more important resistance area that will require buying pressure to overcome.
The $3,800 level is a major resistance point that can determine the next price action. A critical break above this level could pave the way to $3,880, with the psychological $4,000 level becoming a realistic target if the advance continues.
On the support side, the market structure shows several levels that can prevent a potential downward movement. Immediate support sits at $3,700, followed by a strong support zone near $3,675.
Technical indicators provide additional insight into market conditions. The MACD indicator, while still in the bullish zone, shows signs of slowing down. This suggests that rulers will need to show renewed strength to sustain the upward trend.
The Relative Strength Index (RSI) remains above the 50 mark on the hourly time frame, indicating that buyers dominate the market despite recent consolidation. This technical reading is consistent with the overall labor market structure.
If the price experiences a pullback, the 61.8% Fibonacci retracement level at $3,640 could serve as a key support area. This level often acts as a last line of defense before deeper corrections occur.
The $3,570 level represents another important support zone, followed by the psychologically important $3,550 mark. These levels could be useful if the market experiences a broader correction.
Current trading patterns suggest that institutional and retail investors have continued interest in Ethereum, indicating continued trading on major exchanges. The price action remains supported by technical factors and market volatility.
