Ethereum rallied above $2,700 against the US Dollar. ETH price is now consolidating near $2,800 and might start a short-term downside correction.
- Ethereum started a fresh increase above the $2,700 resistance level.
- The price is now trading above $2,700 and the 100 hourly simple moving average.
- There is a key bullish trend line forming with support near $2,720 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is consolidating above $2,750 and might correct lower in the near term.
Ethereum Price Extend Gains
Ethereum remained well bid above the $2,600 support zone. A low was formed near $2,590, and ETH started a fresh increase above the key $2,650 and $2,680 resistance levels. The price even cleared the $2,700 level.
Finally, there was a move above the $2,750 level and a close above the 100 hourly simple moving average. A high is formed near $2,791 and the price is now consolidating gains. It is trading nicely above the 23.6% Fib retracement level of the upward move from the $2,634 swing low to $2,791 high.
There is also a key bullish trend line forming with support near $2,720 on the hourly chart of ETH/USD. An immediate resistance on the upside is near the $2,780 level. The first major resistance is near the $2,800 level.
Source: ETHUSD on TradingView.com
Ether price must clear the $2,780 and $2,800 resistance levels to start another increase. In the stated case, the price may perhaps rise towards the $2,880 level. Any more gains might call for a move towards the main $3,000 resistance zone in the near term.
Dips Limited in ETH?
If ethereum fails to start a fresh increase above the $2,800 level, it could start a short-term downside correction. An initial support on the downside is near the $2,750 level.
The next major support is near the $2,720 level and the trend line. The main support is now near the $2,700 level. It is near the 50% Fib retracement level of the upward move from the $2,634 swing low to $2,791 high. A downside break below the $2,700 support zone might start a fresh decline towards the $2,600 level.
Hourly MACD – The MACD for ETH/USD is now losing pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is still above the 50 level.
Major Support Level – $2,600
Major Resistance Level – $2,700