- Ethereum price faces strong resistance at $3,800 after a rally from $3,300 to $3,680, with support at $3,540.
- MACD and RSI indicators show bullish momentum for Ethereum, but $3,800 resistance remains a key hurdle.
- Ethereum price tests $3,800 resistance, with trading volume decreasing as the market waits for a potential breakout.
The Ethereum price has faced difficulty breaking through the $3,800 resistance level after a strong rally in recent weeks. Despite a notable surge from $3,300 to $3,680, Ethereum has been unable to push beyond this critical resistance zone. As Ethereum price continues to test this level, traders are questioning whether the rally will continue or if a correction is imminent.
Ethereum Price Action and Resistance Levels
Ethereum price movement has remained relatively volatile, particularly in late July to early August. Since July 29, Ethereum has gained momentum with buyers purchasing around the spot that saw Ethereum spike to $3,680 on August 5. Nevertheless, the resistance at the 3,800 mark has been acting as an obstacle, and the price did not advance more positively.
Source: AltcoinSherpa/X
The support area surrounding $3,540 is strong, and this value serves as an important barrier to a sharper correction and can give Ethereum a bit of stability. Traders are keenly observing the resistance level at $3,800 that has already been tested several times but did not break.
Unless Ethereum is able to overcome this resistance, it may find itself in a corrective position, a consolidation before it makes another effort to move above this resistance.
Technical Indicators Show Positive Momentum
Ethereum price has a number of positive technical indicators in place, supporting its price and suggesting that a further increase is possible. The MACD indicates an upgoing crossover, and the MACD curve is above the signal curve, indicating a high positive momentum. It implies that the Ethereum price may keep increasing in case the buying pressure is strong.
Source: Tradingview
Also, the Relative Strength Index (RSI) is at 60.59, indicating a persistent upward trend, but not an overbought state. This fact means that Ethereum price can further grow before it is in a possible reversal zone. Nevertheless, the resistance point at $3,800 is a huge barrier. Any prolonged breakout above this level will rely on the continued buying action and the maintenance of bullish momentum in the market.
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