TA: Ethereum Rallies 10%: Why More Gains Seem Possible
Ethereum started a steady increase above the $2,650 resistance against the US Dollar. ETH price could rise further if there is a clear move above the $2,800 level.
- Ethereum gained pace above the $2,600 and $2,650 resistance levels.
- The price is still trading above $2,650 and the 100 hourly simple moving average.
- There is a major bullish trend line forming with support near $2,580 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could extend increase if it surpasses the $2,800 resistance zone.
Ethereum Price Gains Momentum
Ethereum remained well bid near the $2,500 level. As a result, ETH started a steady increase above the $2,600 resistance zone, similar to bitcoin. The bulls pumped the price above the $2,650 barrier and the 100 hourly simple moving average.
The upward move was such that the price even moved above the $2,700 level. A high is formed near $2,766 and ether price is now consolidating gains. It is trading well above the 23.6% Fib retracement level of the upward move from the $2,478 swing low 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 also trading above $2,650 and the 100 hourly simple moving average.
Source: ETHUSD on TradingView.com
An immediate resistance on the upside is near the $2,780 level. The first major resistance is near the $2,800 level. A clear move above the $2,800 resistance might push the price further higher. In the stated case, the pair could even surpass the $2,850 level.
The next key hurdle could be $2,920, above which the bulls may perhaps aim a test of the key $3,000 resistance zone in the near term.
Dips Limited in ETH?
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.
The first key support is now forming near the $2,640 level. It is near the 50% Fib retracement level of the upward move from the $2,478 swing low to $2,766 high. If there is a downside break below the $2,640 level, the price move down towards the $2,500 level.
Hourly MACD – The MACD for ETH/USD is gaining pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now well above the 50 level.
Major Support Level – $2,650
Major Resistance Level – $2,780