$ETH Ethereum is currently consolidating near the $3,800 level after testing resistance around $3,940, suggesting a potential rally toward $4,000 in the near term. The hourly chart reveals a negative trend line resistance at $3,840, which Ethereum needs to break decisively to resume its upward momentum. Support remains firm above $3,720, with further downside protection near $3,680 and $3,550 if bearish pressure intensifies.
From a technical perspective, Ethereum is holding above its 100-hour simple moving average (SMA) and the 50% Fibonacci retracement level of the recent surge from $3,515 to $3,939. A clean breakout above $3,840 could lead to subsequent resistance tests at $3,880 and $3,940, with potential extension beyond $3,965. Sustained strength above $3,965 may open the door for a move towards $4,000 and possibly $4,120.
However, momentum indicators signal some caution: the hourly MACD is losing bullish momentum, and the RSI is positioned below 50, indicating the possibility of further pullbacks. Key support to watch includes $3,720 and $3,680; a breakdown below these levels might trigger deeper corrections toward $3,650 and $3,550.
In summary, Ethereum is positioned for a potential comeback rally if it clears immediate resistance levels, with important support levels providing downside risk management points. Traders should monitor confirmation of a breakout above $3,840 before committing to long positions and keep an eye on volume and momentum indicators to validate trend continuation.
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