Ethereum’s price is currently consolidating above the $2,700 resistance, showing signs of stability in the market. However, for ETH to gain bullish momentum, it needs to surpass the $2,785 resistance zone.
Despite the struggle to break past the $2,800 level, Ethereum is trading above $2,700 and the 100-hourly Simple Moving Average. A crucial bullish trend line is also forming with support at $2,720 on the hourly chart of ETH/USD provided by Kraken. This indicates a potential bullish rally if ETH manages to close above $2,780.
The recent consolidation of Ethereum’s price above $2,650 has laid a strong foundation for a steady upward movement. With a recent high at $2,820, the price is now undergoing a correction similar to Bitcoin. This correction saw a slight pullback below $2,780 and a decline below the 23.6% Fib retracement level from the swing low of $2,536 to the high of $2,820.
If Ethereum sees another uptrend, it may encounter resistance around the $2,780 level, with the $2,820 mark as a significant hurdle. A successful close above $2,820 could propel Ether towards the $2,880 resistance level, followed by potential targets at $2,950 and $3,000 in the short term.
Conversely, a failure to break the $2,780 resistance may lead to a downward trend. Initial support levels are identified near $2,720 and the trend line, followed by a crucial support level around $2,675 or the 50% Fib retracement level. Further declines could bring ETH down to $2,620 and potentially $2,550, with a key support level at $2,500.
Looking at technical indicators, the hourly MACD for ETH/USD is showing signs of weakening momentum in the bullish zone, while the RSI is currently above the 50 zone. Major support and resistance levels are identified at $2,720 and $2,780 respectively, providing essential reference points for traders and investors in the Ethereum market.
