Ethereum price extended its increase above the $2,650 resistance. ETH is now correcting gains and might find bids near the $2,600 support.
- Ethereum is currently correcting gains from the $2,700 resistance.
- The price is trading above $2,600 and the 100-hourly Simple Moving Average.
- There is a key bullish trend line forming with support at $2,600 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair must stay above the $2,550 support to continue higher in the near term.
Ethereum Price Holds Support
Ethereum price remained well-supported and extended its increase, surpassing Bitcoin. ETH managed to break through the $2,550 and $2,650 resistance levels. The bullish momentum even pushed the price above the $2,680 resistance level.
The price tested the $2,700 zone, forming a high at $2,701 before it started correcting gains. This correction saw the price drop below the $2,650 level, even descending below the 23.6% Fibonacci retracement level of the upward move from the $2,528 swing low to the $2,701 high.
Currently, Ethereum is trading above $2,600 and the 100-hourly Simple Moving Average. Additionally, a key bullish trend line is forming with support at $2,600 on the hourly chart of ETH/USD. This trend line is close to the 50% Fibonacci retracement level of the upward move from the $2,528 swing low to the $2,701 high.
On the upside, the price seems to be encountering resistance near the $2,650 level. The first significant resistance is around the $2,680 level. The next critical resistance is near $2,700.
An upside break above the $2,700 resistance might pave the way for more gains. If this scenario unfolds, Ether could rise towards the $2,780 resistance zone in the near term. The subsequent hurdle sits near the $2,840 or $2,880 level.
More Losses In ETH?
If Ethereum fails to clear the $2,650 resistance, it could continue to decline. The initial support on the downside is near $2,615. The first major support lies near the $2,600 zone and the trend line area.
A clear move below the $2,600 support might push the price towards the $2,550 level. Further losses could send the price towards the $2,525 support level in the near term. The next crucial support sits at $2,450.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 zone.
Major Support Level – $2,600
Major Resistance Level – $2,650
