TA: Ethereum Breaks Barrier, A Strengthening Case for More Upsides
Ethereum started a decent increase above the $2,600 resistance against the US Dollar. ETH price is gaining pace and could even rally above the $2,720 zone.
- Ethereum formed a base above $2,500 and started a fresh increase above $2,600.
- The price is now trading above $2,600 and the 100 hourly simple moving average.
- There was a break above a major bearish trend line with resistance near $2,580 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could accelerate higher above the $2,720 and $2,750 levels in the near term.
Ethereum Price Gains Pace
Ethereum remained well bid above the $2,450 level. ETH stared a decent increase and formed a base above the $2,500 level. There was a break above the $2,550 resistance zone and $2,580.
There was also a break above a major bearish trend line with resistance near $2,580 on the hourly chart of ETH/USD. Ether price settled above the $2,600 level and the 100 hourly simple moving average. The bulls pushed the price above $2,700 and a high is formed near $2,728.
The price is now consolidating gains near the $2,700 level. It is also trading well above the 23.6% Fib retracement level of the upward move from the $2,445 swing low to $2,728 high.
Source: ETHUSD on TradingView.com
On the upside, an initial resistance is near the $2,725 zone. The first major resistance is seen near the $2,750 level. The next major resistance might be near the $2,800 level, above which the price could accelerate higher. In the stated case, the price might rise towards the $2,880 level.
Fresh Decline in ETH?
If ethereum fails to continue higher above the $2,725 level, it could a downside correction. An initial support on the downside is near the $2,660 level.
The next major support is near the $2,640 level and the 100 hourly simple moving average. The main support is now forming near the $2,580 level. It is near the 50% Fib retracement level of the upward move from the $2,445 swing low to $2,728 high. Any more losses might call for a move towards the $2,500 level in the near term.
Hourly MACD – The MACD for ETH/USD is now gaining pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 60 level.
Major Support Level – $2,580
Major Resistance Level – $2,725
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