Key Takeaways:
– Ethereum has experienced a fresh surge, breaking the $2,420 resistance and almost hitting $2,500.
– The crypto asset’s price is currently consolidating gains well above $2,400 and the 100-hourly Simple Moving Average.
– Resistance in the short term is anticipated at the $2,480 and $2,500 levels, with the next significant level seen at $2,550.
The recent remarkable uptrend of Ethereum’s (ETH) the second-largest cryptocurrency by market capitalization, saw the ETH price reaching the $2,500 resistance zone from a low of $2,320 in a fresh upward move. This rise in price, about 10%, outperformed Bitcoin’s performance, signaling Ethereum’s strong market position.
Ethereum’s Upward Trend
The increase in Ethereum’s price occurred swiftly as it broke the $2,350 and $2,420 resistance levels. Subsequently, the price peaked at $2,493 before undergoing a minor correction below $2,460. Ethereum then tested the 23.6% Fibonacci retracement level of the upswing from the $2,277 swing low to the $2,493 high.
As of now, Ethereum’s price is faring well, trading above the 100-hourly Simple Moving Average of $2,440. A bullish trend line with support at $2,385 on the hourly chart of ETH/USD has also formed. This trend line is hovering close to the 50% Fibonacci retracement level of the move from the swing low of $2,277 to the swing high of $2,493.
Potential Hurdles and Support Levels
On the upside, Ethereum seems to confront resistance around the $2,480 level. The following significant resistance levels are placed near $2,500 and $2,550. Should the cryptocurrency manage to break above these resistance levels, particularly the critical $2,550 level, a further uptrend may be spurred potentially driving Ethereum towards the $2,650 resistance area in the short term. The subsequent hurdles to consider are situated at $2,750 and $2,800 levels.
On the downside, the initial support traced is near the $2,440 level. Should Ethereum fail to surpass the $2,480 resistance, a downside correction may commence. A level of significance to watch is the $2,385 zone, which offers major support in tandem with the trend line.
Shifting Dynamics
In case of a move below the $2,385 support, the Ethereum price could move towards the $2,320 level. Further losses might drive the price towards the $2,250 support level in the short term. The next major support zone is found around the $2,200 level.
Looking at the Technical Indicators, ETH/USD’s MACD shows that momentum in the bullish zone is retreating. On the other hand, the Relative Strength Index (RSI) for ETH/USD now lies beyond the 50 zones, which is a healthy sign.
In short, Ethereum’s market performance is showing promise. However, it must overcome several levels of resistance to continue its bullish run. On the flip side, it appears adequately cushioned with multiple levels of support against potential downward corrections.
Please note, these trends are subject to fluctuations in the fast-evolving crypto market and good due diligence is always recommended when trading cryptocurrencies.