Ethereum is showing bullish signs above $3,700
TLDR
Ethereum is trading at $3,870 on the hourly chart above $3,770 and above the 100-hour SMA break above the weak trend line.
Ethereum price is showing renewed strength in recent trading, holding above the $3,770 level and the 100 hourly simple moving average. The second largest cryptocurrency by market capitalization has formed a strong base above the $3,670 support zone, indicating sustained buyer interest in the market.
The price action has shown exceptional strength in recent hours, with ETH forming a stable base before starting a new surge above the $3,720 mark. This move outperformed Bitcoin's performance over the same time frame, indicating independent strength in Ethereum's market volatility.
According to market data, the bulls have successfully pushed the price above the resistance level of $3,780, which indicates a clear break above the 50% Fibonacci retracement level. This technical milestone represents the midpoint of the downward move from the $3,956 high to the $3,680 low.
Adding to the technical picture, traders saw a break above the short-term bearish trend line, which established resistance at $3,870 on the hourly chart of ETH/USD. This development suggests a potential change in the short-term market structure.
The current price action puts Ethereum to test higher levels, although several resistance points remain ahead. The immediate test is seen at the $3,890 level, which coincides with the 76.4% Fibonacci retracement level of the recent downward move.
Looking at the technical structure, the first major resistance zone has been formed near the $3,950 level. Beyond this, traders are looking at the $3,980 mark as a key hurdle to overcome. A successful break above this level could pave the way to the psychologically important $4,000 mark.
Every hour, the MACD indicator shows an increasing momentum in the bullish zone, which provides additional technical confirmation of the current upward pressure. The RSI (Relative Strength Index) for ETH/USD has moved above the 50 zone, indicating increased buying pressure in the market.
However, the market structure shows potential support levels should any downside pressure develop. The first prominent support is seen around $3,820, with a more important support zone established around $3,775.
Trading volumes have remained stable during this price movement, indicating sustained market participation. The price action remained consistent above key moving averages, indicating strength in the current market structure.
If the upward momentum continues and Ethereum successfully breaks above the $4,000 resistance, the technical analysis may extend to $4,050 and possibly $4,120. These levels represent the next major technical hurdles based on previous price action and chart patterns.
On the downside, market participants are looking at several key support levels. A move below $3,775 could lead to a test of the $3,720 support. Further selling pressure could bring the $3,650 level into focus, with the next significant support sitting at $3,620.
The market's technical indicators paint a picture of upward momentum in control. Respecting established support levels, the price maintained positions above key moving averages while indicating orderly market behavior.
Recent trading patterns show increasing buying pressure at key support levels, indicating active market participation by buyers as prices decline. This behavior contributed to the overall stability of the upward price movement.
Hourly chart patterns show a series of highs and lows, typically considered massive market structures. This pattern developed alongside a break above the aforementioned bearish trend line.
The current price action puts Ethereum near the high range of recent trading activity.
The most recent data shows Ethereum trading near $3,870, breaking above the $3,650 support zone and overcoming several minor resistance levels.
