Ethereum (ETH) Targets $4,000 Milestone: Can the Rally Ignite?

Ethereum (ETH) Targets $4,000 Milestone: Can The Rally Ignite?

Key Takeaways:

Ethereum started a fresh increase from the $3,000 support zone.

ETH/USD surpassed a short-term contracting triangle with resistance at $3,300 on the daily chart.

The price shows bullish signs and might soon climb toward the $4,000 level.

Ethereum (ETH) is gaining momentum above $3,500, beating Bitcoin. The price could resume its increase if it surpasses $3,680.

Ethereum Price Gains Bullish Momentum

In the last technical analysis, we saw a decent increase in Ethereum above the $3,000 resistance level and the 50-day simple moving average (blue). The price even spiked toward the $3,500 resistance level before it faced sellers. There was a move above the 61.8% Fib retracement level of the key drop from the $3,975 swing high to the $2,099 low.

Recently, there was a consolidation phase above the $3,000 support zone. Finally, the price started another increase above the $3,300 resistance zone. On the daily chart, it surpassed a short-term contracting triangle with resistance at $3,300.

Ethereum price daily chart | Source: ETH/USD on TradingView.com

Ethereum is now trading well above the 50-day simple moving average (blue) and the 76.4% Fib retracement level of the key drop from the $3,975 swing high to the $2,099 low.

These are positive signs and suggest that the price might continue to rise above $3,650. On the upside, the price could face resistance near the $3,680 level. The first major resistance sits near the $3,840 level.

The next resistance is near the $4,000 level. A clear move above this level could open the doors for a strong increase toward the $4,250 level. If ETH bulls push the price above this resistance, they could aim for a new all-time high or even $5,000.

Are Dips Supported In ETH?

Conversely, Ethereum might see a downside correction. Immediate support on the downside is near the $3,450 level. The first major support sits near the $3,300 level or the same triangle’s trend line.

A daily close below the $3,300 level might spark bearish moves in ETH. In the stated case, the price could drop and test the $3,000 support. If the bulls fail to defend the $3,000 support, Ethereum might even decline and retest the 50-day simple moving average (blue) at $2,800.

Overall, Ethereum price is gaining bullish momentum above the $3,500 resistance zone. ETH might continue to rise toward the $4,000 resistance zone in the near term.

The post Ethereum (ETH) Targets $4,000 Milestone: Can The Rally Ignite? appeared first on CoinChapter.