Ethereum Eyes Bitcoin’s Lead: Is a Similar Surge Possible?
2024-12-16
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Ethereum price started a decent increase above the $3,900 zone. ETH is consolidating gains and might aim for a move above the $4,000 resistance zone.
Ethereum Price Faces Resistance
Ethereum price remained stable and extended gains above $3,850 but it underperformed Bitcoin. ETH was able to climb above the $3,920 and $3,980 resistance levels.
There was a break above a key bearish trend line with resistance at $3,900 on the hourly chart of ETH/USD. The bulls pushed the pair above the $4,000 and $4,010 resistance levels. A high was formed at $4,019 and the price is now consolidating gains. There was a minor decline below the $3,980 level.
The price even dipped below the 23.6% Fib retracement level of the upward move from the $3,831 swing low to the $4,019 high. Ethereum price is now trading above $3,880 and the 100-hourly Simple Moving Average.
On the upside, the price seems to be facing hurdles near the $4,000 level. The first major resistance is near the $4,020 level. The main resistance is now forming near $4,050. A clear move above the $4,050 resistance might send the price toward the $4,150 resistance.
An upside break above the $4,150 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $4,250 resistance zone or even $4,320.
Another Decline In ETH?
If Ethereum fails to clear the $4,000 resistance, it could start another decline. Initial support on the downside is near the $3,920 level and the 50% Fib retracement level of the upward move from the $3,831 swing low to the $4,019 high. The first major support sits near the $3,880 zone.
A clear move below the $3,880 support might push the price toward the $3,840 support. Any more losses might send the price toward the $3,750 support level in the near term. The next key support sits at $3,650.
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 – $3,920
Major Resistance Level – $4,000