Ethereum started a decent increase above the $2,650 resistance. According to technical analysis by NewsBTC’s Aayush Jindal, if there is a clear move above the $2,800 level, ETH could rise even higher.
Ethereum Gains Momentum
Ethereum started a decent increase above the $2,600 resistance zone, similar to Bitcoin, after continuing to trade near the $2,500 level. The bulls pushed the price above the $2,650 barrier and the 100 hourly simple moving average. ETH even climbed above the $2,700 level. A local top was formed near $2,766 and ETH is now consolidating gains. It is trading well above the 23.6% Fib retracement level of the upward move from the $2,478 high to $2,766 high.
Besides, there is a major bullish trend line forming with support near $2,580 on the hourly chart of ETH/USD. The pair is now trading above $2,650 and the 100 hourly simple moving average.
An immediate resistance is near the $2,780 level. The first major resistance is near the $2,800 level. A clear move above the $2,800 resistance could push the price higher. In the stated case, the pair might even surpass the $2,850 level.
The next key hurdle could be $2,920, above which the bulls may aim to test the key $3,000 resistance area in the near term.
Will Ethereum Drop?
Jindal says that if Ethereum fails to start a fresh increase above the $2,780 level, it could start a downside correction. An initial support on the downside is near the $2,700 level.
An initial key support is now formed near the $2,640 level. This is close to the 50% Fib retracement level of the upward move from the $2,478 low to $2,766 low. If there is a downside break below the $2,640 level, the price could decline towards the $2,500 level.
What Are Technical Indicators Saying?
- Hourly MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.
- Hourly RSI – The RSI for ETH/USD is currently well above the 50 level.
- Main Support Level – $2,650
- Main Resistance Level – $2,780
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