Why Ethereum (ETH) Looks Ready For Another Leg Higher Over $3K
Ethereum started a strong rally above the $2,550 resistance against the US Dollar. ETH price is now consolidating gains and it could rise further towards $3,000.
- Ethereum gained pace after it broke the key $2,550 resistance zone.
- The price is now trading well above $2,600 and the 100 hourly simple moving average.
- There was a break above a major bearish trend line with resistance near $2,600 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is likely to continue higher as long as it is above the $2,550 support zone.
Ethereum Price Starts Fresh Rally
Ethereum formed a support base above the $2,450 zone. As a result, there was a fresh increase and ETH price climbed above the $2,550 resistance zone to enter a bullish zone, outpacing bitcoin.
There was also a break above a major bearish trend line with resistance near $2,600 on the hourly chart of ETH/USD. The pair gained pace above the $2,600 level and it settled nicely above the 100 hourly simple moving average.
A high was formed near $2,770 and the price is now correcting gains. It broke the $2,700 support level. Ether price even declined below the 23.6% Fib retracement level of the recent rally from the $2,461 swing low to $2,770 high.
Source: ETHUSD on TradingView.com
It is now consolidating above the $2,665 support zone. On the upside, an immediate resistance is near the $2,720 level. The next key resistance is near the $2,750 level. A clear break and close above the $2,750 and $2,770 resistance levels might start another increase. In the stated case, the price could rally above $2,800. The next stop for the bulls may possibly be near the $3,000 level.
Dips Limited in ETH?
If ethereum fails to continue higher above the $2,750 and $2,770 resistance levels, it could start an extended downside correction. An immediate support on the downside is near the $2,665 level.
The next major support is near the $2,620 level. It is near the 50% Fib retracement level of the recent rally from the $2,461 swing low to $2,770 high. Any more losses could lead the price towards the $2,550 support zone and the 100 hourly simple moving average.
Hourly MACD – The MACD for ETH/USD is slowly gaining pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now well above the 50 level.
Major Support Level – $2,620
Major Resistance Level – $2,750