Ethereum has been demonstrating impressive resilience as it continues to find solid footing along a well-established rising trend line that has been guiding the uptrend since mid-July.
With the current price trading at $3,821.07, the cryptocurrency appears poised to challenge higher Fibonacci extension levels if this critical support structure maintains its integrity.
The ascending trend line, clearly visible on the hourly chart, has provided multiple successful tests over the past several weeks, each bounce reinforcing its significance as a dynamic support level.
This upward-sloping foundation has coincided with the 200-period moving average (displayed in red), creating a confluence of technical support that has proven reliable for bullish continuation patterns.
The Fibonacci extension tool reveals compelling upside targets, with the 0.382 extension sitting at $3,865.81, the 0.5 level at $3,999.46, and the more ambitious 0.618 extension positioned at $3,953.11.
Most notably, the 0.764 extension target at $4,007.11 represents a critical threshold that could unlock further upside momentum toward the full extension target at $4,094.40 near the key $4,100 major psychological resistance.
Moving Average Alignment
The moving average configuration presents a textbook bullish setup, with the shorter-term 100-period SMA (shown in blue) maintaining its position above the longer-term 200-period average. This positive alignment indicates that the path of least resistance remains to the upside, while the expanding gap between these key indicators suggests strengthening bullish momentum.
Both moving averages are trending higher in parallel with the rising trend line support, creating a triple-layer foundation that would need to be decisively broken to shift the technical outlook from positive to neutral. The 100 SMA is currently positioned around $3,780, providing immediate support for any short-term pullbacks, while the 200 SMA offers a deeper support cushion near $3,720.
The recent price action has shown respect for these dynamic support levels, with each minor correction finding buyers at or near these moving average zones. This behavior reinforces the underlying strength of the uptrend and suggests that institutional and algorithmic trading systems are likely programmed to defend these technically significant levels.
Ethereum Consolidation
The stochastic oscillator in the lower panel currently resides in neutral territory around the 50 midpoint level, indicating a balanced tug-of-war between buyers and sellers. This positioning suggests that Ethereum is in a consolidation phase rather than experiencing either extreme buying or selling pressure, which often precedes significant directional moves.
The MACD histogram displayed in the middle section shows a gradual convergence pattern, with the histogram bars moving closer to the zero line. While this indicates diminishing momentum in the near term, it also suggests that the market is building energy for the next significant move.
Any breakout attempt above the $4,000 resistance zone would likely require a substantial increase in participation to validate the move and attract momentum traders.
The rising trend line support around $3,750 represents the most critical level to monitor. A clean break below this zone, particularly if accompanied by heavy volume, could signal a deeper correction toward the $3,600-$3,650 support area where additional buyers might emerge.