Ethereum price is facing resistance in the $3840 zone
For the fifth day in a row, the price of Ethereum entered a bullish consolidation after falling on Thursday to the $3700 level.
Ethereum chart analysis
For the fifth day in a row, the price of Ethereum entered a bullish consolidation after falling on Thursday to the $3700 level. Additional support for this recovery comes from the EMA200 moving average. This morning, we got it at the $3770 level, after which the price created a bullish impulse and started a recovery to the $3840 level.
Understanding the resistance and support levels is crucial in navigating the Ethereum market. Currently, we have resistance in this zone, and the price is slightly retreating to the $3815 level. If the pressure continues, we can expect another pullback down to EMA200. At the $3778 level, we will test the weekly open price before that and maybe get that support before we continue up again. This knowledge equips you to make informed decisions in your trading strategy.
Bullish consolidation continues today, do we have the strength to go above $3840?
If Ethereum manages to break above the $3840 mark, it would not only form a new weekly high but also significantly bolster the bullish momentum. This could potentially lead to higher targets at the $3860 and $3880 levels. It’s worth noting that last week’s high was at the $3974 level. However, for a bearish option, we would need to see negative consolidation and stronger pressure on the EMA200 support level.
A break below the EMA200 would strengthen the bearish momentum as we broke through the previous bullish formation. Potential lower targets are $3740 and $3720 levels. Last week’s low is still slightly lower at the $3700 level.
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