TA: Ethereum Holds Strong Above $2K, Why Rally Isn’t Over Yet
Ethereum traded to a new all-time high at $2,140 before correcting lower against the US Dollar. ETH price is now holding gains above the $2,000 support zone.
- Ethereum is showing a lot of positive signs above the $2,000 support zone.
- The price is now well above the $2,000 support and the 100 hourly simple moving average.
- There is a key bearish trend line forming with resistance near $2,075 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is likely to start a fresh increase as long as there is no close below the $2,000 support zone.
Ethereum Price Remains In Strong Uptrend
Ethereum followed a bullish path after there was a clear break above the $1,950 resistance, unlike bitcoin. ETH broke many important hurdles near the $2,000 to move further into a positive zone.
The price gained bullish momentum and it even cleared the $2,100 level. Ether traded to a new all-time high near $2,140 before starting a downside correction. It broke the $2,050 support level, but the bulls were active near the $2,000 zone.
The price is now well above the $2,000 support and the 100 hourly simple moving average. It broke the 50% Fib retracement level of the recent decline from the $2,140 swing high to $1,981 low.
Source: ETHUSD on TradingView.com
However, the bears are protecting the $2,100 zone. The price struggled near the 61.8% Fib retracement level of the recent decline from the $2,140 swing high to $1,981 low. There is also a key bearish trend line forming with resistance near $2,075 on the hourly chart of ETH/USD.
On the downside, there is a major support forming near the $2,000 level and the 100 hourly SMA. As long as there is no downside break below $2,000, ether is likely to start a fresh increase above the $2,100 level.
Major Correction in ETH?
If Ethereum fails to stay above the $2,000 support and the 100 hourly SMA, there is a risk of a downside break. The first major support is near the $1,980 level.
Any more losses might lead ether price towards the $1,900 support zone. If the bulls fail to protect $1,900, there could be a test of the $1,850 support zone in the near term.
Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is well below the 50 level.
Major Support Level – $2,000
Major Resistance Level – $2,100
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