Ethereum found strong support near the $2,300 zone. ETH price is rising and it could continue to rise if it surpasses the $2,750 resistance area, according to technical analysis by NewsBTC’s Aayush Jindal.
Ethereum Has Begun a New Rise
Ethereum started a decline well below the $2,600 and $2,500 support levels, then pulled back to the $2,302 level and started a strong rise from there. There was a clear move above the $2,500 resistance level. ETH even climbed above the $2,600 level and the 100 hourly simple moving average. It even climbed above the $2,700 level but there was no break above the $2,750 resistance.
A local top was formed near $2,733 and the price is now consolidating gains. ETH corrected below the 23.6% Fib retracement level of the recent rise from the $2,302 high to $2,733 high, but it remains trading above the $2,500 level and the 100 hourly simple moving average. There is also a key bullish trend line forming with support near $2,520 on the hourly chart of ETH/USD. The first major resistance is seen near the $2,680 and $2,700 levels.
The main resistance is currently forming near the $2,750 level. A clear move above $2,750 could start a decent uptrend. In the stated case, the price could even rally to the $2,920 level.
Will Ethereum Fall Again?
Jindal says that if Ethereum fails to break above the $2,750 resistance, it could start a downside correction. An initial support on the downside is near the $2,600 level. The next major support is near the $2,500 level and the trend line. This is close to the 50% Fib retracement level of the recent rise from the $2,302 low to $2,733 low. A downside break below the $2,500 support could push the price towards the $2,400 support level.
What Do Technical Indicators Say?
- Hourly MACD – The MACD for ETH/USD is now losing momentum in the bullish zone.
- Hourly RSI – The RSI for ETH/USD is still above the 50 level.
- Major Support Level – $2,500
- Major Resistance Level – $2,750
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