- Ethereum’s price is testing the $3,940 resistance level and, after reaching a consolidation phase, may target a break above $4,000.
- Technical indicators suggest that Ethereum is a strong buy, with the RSI at 50, indicating bullish sentiment for ETH.
- ETH ETFs have also performed strongly this month and could soon overtake BTC ETFs.
Ethereum Price Support In The Green
Ethereum’s price attempted to mirror Bitcoin’s price trajectory but failed to sustain past $3,900. Following a peak at $3,939, ETH began a downward correction, dipping below $3,900.
The price of Ethereum has fallen below the $3,820 support level and is now trading below the 23.6% Fibonacci Retracement level. This particular retracement level is calculated based on the recent upward movement from a swing low of $3,515 to a high of $3,939.
Note: Fibonacci Retractment is a technical analysis tool used by traders to identify resistance and support levels.
These levels capture the support and resistance levels of the asset. Let’s say Ethereum has consistently traded at $3,900 then it becomes the support level. If Ethereum has touched $4,200 at different times during a week or 24 hours (timeframes could differ) then $4,200 is Ethereum’s resistance.
If Ethereum price breaks above the $3,965 resistance level, it could signal further upward momentum in the near term. In such a scenario, Ether’s price might advance towards the $4,000 resistance zone or potentially reach $4,120.
Another reason behind Ethereum’s unprecedented growth is the increased demand for ETH ETFs.
Possible Dip in Ethereum Price
If Ethereum fails to break the $3,840 then it could trigger a price correction forcing the asset to fall further. The first support level to watch is around $3,720, with a more significant support zone at $3,680.
If Ethereum drops below $3,860 support, then it may further dip to $3,650 support. Conservatively, if Ethereum finds support at $3,550, then it may even drop to $3,420.
In comparison to Bitcoin, Ethereum price trajectory has been impressive. Ethereum was conceptualized in 2013. ETH’s price briefly peaked at $4,815 on November 9, 2021. It traded at $1 in 2015 and by 2016 the price had shot to $10. In 2017, ETH then reached $100. This is a 900% increase in price.
