Ethereum Price Tests Resistance — Breakout Could Spark Rally

Ethereum price started a fresh increase above the $2,480 zone. ETH is now consolidating gains and might soon aim for a move above the $2,520 resistance.

• Ethereum started a fresh upward move above the $2,450 level.
• The price is trading above $2,450 and the 100-hourly Simple Moving Average.
• There is a key bullish trend line forming with support at $2,440 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could start a fresh increase if it remains stable above the $2,420 zone in the near term.

Ethereum Price Eyes More Gains

Ethereum price started a fresh increase above the $2,420 support level, like Bitcoin. ETH price was able to clear the $2,450 and $2,480 resistance levels to move into a positive zone.

The bulls even pushed the price above the $2,500 zone. However, the bulls were active above the $2,500 level. A high was formed at $2,523 and the price is now consolidating gains above the 23.6% Fib retracement level of the upward move from the $2,394 swing low to the $2,523 high.

Ethereum price is now trading above $2,450 and the 100-hourly Simple Moving Average. There is also a key bullish trend line forming with support at $2,440 on the hourly chart of ETH/USD.

On the upside, the price could face resistance near the $2,520 level. The next key resistance is near the $2,550 level. The first major resistance is near the $2,580 level. A clear move above the $2,580 resistance might send the price toward the $2,650 resistance.

An upside break above the $2,650 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $2,720 resistance zone or even $2,800 in the near term.

Downside Correction In ETH?

If Ethereum fails to clear the $2,520 resistance, it could start a fresh decline. Initial support on the downside is near the $2,480 level. The first major support sits near the $2,460 zone or the 50% Fib retracement level of the upward move from the $2,394 swing low to the $2,523 high.

A clear move below the $2,460 support might push the price toward the $2,440 support. Any more losses might send the price toward the $2,400 support level in the near term. The next key support sits at $2,350.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now above the 50 zone.

Major Support Level – $2,440

Major Resistance Level – $2,520