Important points:
Ethereum price remains positive above the $3,700 support area.
ETH/USD cleared a short-term contracting triangle with resistance at $3,800 on the daily chart.
The price is likely to gain bullish momentum once it clears the $4,000 resistance area.


Ethereum Price
New Delhi (CoinChapter.com) — Ethereum (ETH) has once again rallied above USD 3,800. ETH could surge past USD 10% if it settles above USD 3,950 and USD 4,000 levels.
Ethereum Price Eyes More Upside
After a strong rally following the ETH ETF approval, the bears are defending more gains above the $4,000 resistance. Like bitcoin, Ethereum saw a minor correction from the $3,975 area. The price declined below the $3,920 and $3,880 levels.
ETH tested the 23.6% Fibonacci retracement level of the up move from the $2,870 swing low to $3,975 high. However, the bulls were actively active above the $3,700 area and the price remained above the 50-day simple moving average (blue line).


Ethereum price daily chart | Source: TradingView.com
Recently, Ethereum saw another upward move from the $3,700 area. The price broke the $3,780 and $3,800 resistance levels. Moreover, there was a clearing of a short term contracting triangle with resistance at $3,800 on the daily chart.
These are all positive signs and suggest that the possibility of more upside is high. On the upside, an immediate resistance is near the $3,900 level. The first major resistance is near the $3,950 level.
The main resistance is likely to be $4,000. A clear break above the $4,000 resistance could trigger another wave of growth. In such a case, the price is likely to rebound and test the $4,080 resistance. The next major resistance is near the $4,250 level.
A successful close above the $4,250 resistance could push Ether towards $4,400. More gains could spark a move towards the $5,000 region in the near term.
Another Downside Correction for Ethereum?
Conversely, Ethereum might start another downside correction. The first major support is near the $3,700 level. If there is a break below the $3,700 support area, there is a risk of a larger correction. In such a case, the price might test the $3,550 level.
The next major support is at $3,420 near the 50% Fibonacci retracement level of the up move from the $2,870 swing low to $3,975 high. A downside break and intraday close below $3,420 might call for a test of the $3,300 support and the 50-day simple moving average (blue line).
Overall, Ethereum price is maintaining gains above the $3,720 and $3,700 levels. If ETH breaks above the $4,000 resistance, there could be a fresh rally in the near term.