Ethereum Price Starts Consolidation – Why Pullbacks Could Be Limited

11 March 2024

Ethereum price is still struggling to clear the $4,000 resistance zone. ETH might consolidate for some time above $3,600 before the bulls gain strength.

Ethereum traded to a new multi-month high above $3,980.
The price is trading near $3,850 and the 100-hourly Simple Moving Average.
There is a short-term breakout pattern forming with resistance at $3,950 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could resume its increase if it clears the $3,950 resistance zone.

Ethereum Price Revisits $4K

Ethereum price extended its rally above the $3,900 level, like Bitcoin. ETH cleared the $3,950 level and traded close to the $4,000 resistance zone. It traded to a new multi-month high above $3,990 and recently started a consolidation phase.

There was a pullback below the $3,920 level. The price tested the 23.6% Fib retracement level of the recent wave from the $3,211 swing low to the $3,9983 high. Ethereum price is now consolidating near $3,850 and the 100-hourly Simple Moving Average.

There is also a short-term breakout pattern forming with resistance at $3,950 on the hourly chart of ETH/USD. If the pair stays above the $3,800 level, it could attempt another increase. Immediate resistance on the upside is near the $3,900 level.

Source: ETHUSD on TradingView.com

The first major resistance is near the $3,940 level. The next major resistance is near $4,000, above which the price might gain bullish momentum. In the stated case, Ether could rally toward the $4,120 level. If there is a move above the $4,120 resistance, Ethereum could even rise toward the $4,220 resistance. Any more gains might call for a test of $4,350.

Are Dips Limited In ETH?

If Ethereum fails to clear the $3,950 resistance, it could start another downside correction. Initial support on the downside is near the $3,800 level.

The first major support is near the $3,600 zone or the 50% Fib retracement level of the recent wave from the $3,211 swing low to the $3,9983 high. The next key support could be the $3,400 zone. A clear move below the $3,400 support might send the price toward $3,250. Any more losses might send the price toward the $3,120 level.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is losing momentum in the bullish zone.

Hourly RSIThe RSI for ETH/USD is now below the 50 level.

Major Support Level – $3,800

Major Resistance Level – $3,950

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