Ethereum is showing positive signs above $2,500 against the US Dollar. ETH price is likely to climb above $2,650 and it could revisit $2,800. According to technical analysis by NewsBTC’s Aayush Jindal:
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- Ethereum started a steady rise above the $2,500 resistance and $2,550.
- Price is currently trading well above $2,500 and the 100 hourly simple moving average.
There was a break above a major downtrend line with resistance near $2,480 on the hourly chart of ETH/USD (data from Kraken).
- The pair is likely to rise above $2,650 and $2,700 in the near term.
Ethereum (ETH) Price Gains Bullish Momentum
Ethereum formed a bottom above the $2.350 level and started a fresh increase. ETH broke the $2,450 resistance zone to move into a bullish zone.
There was a break above a major bearish trend line with resistance near $2,480 on the hourly chart of ETH/USD.
The pair settled nicely above the $2,500 level and the 100 hourly simple moving average. The pair climbed above the $2.550 resistance level.
ETH is currently 76% of the drop from $2,626 to $2,260. It is trading well above the 4 Fib retracement level. An immediate resistance is near the top of $2,626. 2. A clear upside break above $626 could set the pace for a larger rise in the coming sessions.
The next important resistance is near the $2,715 level. This is close to the 1.226 Fib extension level, which is the main point of the drop from the $2.626 low to $2.260 low. 2. Any gains above $720 could open the doors for a larger increase. The next major hurdle for the bulls is near the $2,800 level.
Will Ethereum (ETH) Drop?
If Ethereum fails to clear the $2,620, and $2,650 resistance levels, it could start a downside correction. An initial support on the downside is near the $2,580 level.
The first major support is near the $2,550 level. Any further losses would likely require testing of the $2,500 support and the 100 hourly SMA in the coming sessions. A downside break below the 100 hourly SMA could push Ethereum price towards the $2,450 support zone.
Technical Indicators
- Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bullish zone.
- Hourly RSI – The RSI for ETH/USD is currently well above the 50 level.
- Main Support Level – $2,500
- Main Resistance Level – $2.650
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