Ethereum started a strong rally above the $2.550 resistance against the US Dollar. ETH's price is now consolidating earnings and could rise further to $3.000.
- Ethereum picked up pace after breaking the $2.550 resistance zone.
- The price is now trading well above $2.600 and the 100 hour simple moving average.
- There was a break above a major downtrend line with resistance near $2.600 on the hourly chart's ETH/USD (data feed via Kraken).
- The pair is likely to continue higher as long as it stays above the $2.550 support zone.
In this article, we will discuss:
Ethereum Price Begins Fresh Rally
Ethereum has formed a base of support above the $2.450 zone. As a result, there was a further increase and the price of ETH rose above the $2.550 resistance zone to enter a bullish zone, bypassing bitcoin.
There was also a break above a major downtrend line with resistance near $2.600 on the hourly chart's ETH/USD. The pair gained pace above the $2.600 level and settled well above the 100-hour simple moving average.
A high was formed near $2.770 and the price is now correcting gains. It has broken the $2.700 support level. Ether price still dipped below the 23,6% Fib retracement level of the recent high, from $2.461 at the swing low to $2.770 at the high.
It is now consolidating above the $2.665 support zone. On the upside, immediate resistance is near the $2.720 level. The next key resistance is near the $2.750 level. A clear break and a close above the $2.750 and $2.770 resistance levels could initiate another rally. In the case cited, the price could rise above $2.800. The next stop for bulls might be around the $3.000 level.
Limited ETH Dives?
If ethereum does not continue higher above the $2.750 and $2.770 resistance levels, it could initiate an extended bearish correction. Immediate support on the downside is near the $2.665 level.
The next big support is near the $2.620 level. It is close to the 50% Fib retracement level of the recent high from $2.461 at the oscillating low to $2.770 at the high. Any further losses could drive the price into the $2.550 support zone and the 100 hour simple moving average.
Technical Indicators
Hourly MACD – The ETH/USD MACD is slowly picking up momentum in the bearish zone.
- RSI per hour – The RSI for ETH/USD is now well above the 50 level.
- Main Support Level - $2.620
- Major Resistance Level - $2.750