Ethereum Shows Bullish Signs Above $3,700 Support

TLDR

• Ethereum showing strong upward momentum, trading above $3,770 and 100-hourly SMA
• Break above bearish trend line at $3,870 on hourly chart
• Price faces resistance near $3,890 level
• Major support established at $3,775
• Potential target of $4,000 if price breaks above $3,980 resistance

Ethereum’s price is showing renewed strength in recent trading, maintaining positions above the $3,770 level and the 100-hourly Simple Moving Average. The second-largest cryptocurrency by market capitalization has established a solid foundation above the $3,670 support zone, indicating sustained buyer interest in the market.

The price action has demonstrated particular resilience in recent hours, with ETH forming a stable base before initiating a fresh increase above the $3,720 mark. This movement has outpaced Bitcoin’s performance in the same timeframe, suggesting independent strength in Ethereum’s market dynamics.

Market data indicates that bulls have successfully pushed the price above the $3,780 resistance level, marking a clear break above the 50% Fibonacci retracement level. This technical milestone represents the midpoint of the recent downward move from the $3,956 swing high to the $3,680 low.

Adding to the technical picture, traders have observed a break above a short-term bearish trend line, which had established resistance at $3,870 on the hourly chart of ETH/USD. This development suggests a potential shift in short-term market structure.

The current price action places Ethereum in a position to test higher levels, though several resistance points remain ahead. The immediate challenge appears near the $3,890 level, coinciding with the 76.4% Fibonacci retracement level of the recent downward movement.

Looking at the technical structure, the first major resistance zone has formed near the $3,950 level. Beyond this, traders are watching the $3,980 mark as a key barrier to overcome. A successful break above this level could open the path toward the psychologically important $4,000 mark.

The hourly MACD indicator shows increasing momentum in the bullish zone, providing additional technical confirmation of the current upward pressure. The RSI (Relative Strength Index) for ETH/USD has also moved above the 50 zone, suggesting growing buying pressure in the market.

However, the market structure also reveals potential support levels should any downward pressure emerge. The first notable support appears near $3,820, with a more substantial support zone established around $3,775.

Trading volumes have remained steady during this price movement, indicating sustained market participation. The price action has maintained consistency above key moving averages, suggesting underlying strength in the current market structure.

If the upward momentum continues and Ethereum successfully breaks above the $4,000 resistance, technical analysis suggests potential targets at $4,050 and possibly extending to $4,120. These levels represent the next major technical barriers based on previous price action and chart patterns.

On the downside, market participants are watching several key support levels. A move below $3,775 could lead to a test of the $3,720 support. Further selling pressure might bring the $3,650 level into focus, with the next substantial support positioned at $3,620.

The market’s technical indicators currently paint a picture of controlled upward momentum. The price has maintained positions above key moving averages while respecting established support levels, suggesting orderly market behavior.

Recent trading patterns show increased buying pressure at key support levels, indicating active market participation from buyers when prices dip. This behavior has contributed to the overall stability of the upward price movement.

The hourly chart patterns reveal a series of higher lows, typically considered a bullish market structure. This pattern has developed alongside the break above the previously mentioned bearish trend line.

Current price action places Ethereum near the upper range of recent trading activity, with the price maintaining positions above both the 100-hourly Simple Moving Average and key support levels.

The most recent data shows Ethereum trading near $3,870, having overcome several minor resistance levels in its move upward from the $3,650 support zone.