Ethereum’s native token, Ether (ETH), started a fresh surge and climbed above $3,500. The price is now consolidating gains and might aim for a move above $4,000.
Ethereum Price Eyes Fresh Gains
In the past few days, Ethereum saw a steady increase above the $3,000 resistance zone. ETH gained pace for a move above the $3,250 and $3,500 resistance levels. The bulls even pumped the price above the $3,650 resistance zone.
Finally, the price settled above the $3,500 level and the 50-day simple moving average. A high was formed at $3,942, and the price is now consolidating gains. There is also a short-term contracting triangle forming with support at $3,740 on the daily chart.
Ethereum is now showing positive signs above the $3,750 level and the 50-day simple moving average. In the past two days, ETH outperformed Bitcoin and remained elevated above the $3,650 support zone.
On the upside, the price is facing hurdles near the $3,880 level. The first major resistance sits near the $4,000 zone. If there is a clear move above the $4,000 resistance, the price could drift toward the next major resistance at $4,220.
Any more gains above the $4,220 level could set the pace for a move toward the $4,400 level. The next key resistance could be near the $4,650 level and a new all-time high.
Pullback In ETH?
If Ethereum fails to clear the $3,940 resistance, it could start a downside correction. Immediate support on the downside is near the $3,740 level. The first major support sits near the $3,650 level.
A daily close below the $3,650 level might spark a larger correction in Ethereum. In the stated case, the price could drop and retest the $3,500 support or the 23.6% Fib retracement level of the upward move from the $2,117 swing low to the $3,942 high.
There is also a connecting bullish trend line forming with support at $3,500 on the same chart. The next major support is near the $3,320, below which ETH price might even decline and test the $3,000 zone or the 50% Fib retracement level of the upward move from the $2,117 swing low to the $3,942 high.
Overall, the Ethereum price is showing positive signs above the $3,500 level. If the bulls remain active, they could soon aim for a move above the $3,880 and $3,940 resistance levels. If not, there could be a fresh decline toward $3,500.
