TA: Ethereum Gearing For Another Lift-Off, Why Rally Isn’t Over Yet

Ethereum started a fresh increase above the $2,300 resistance against the US Dollar. ETH price is likely to accelerate higher above the $2,400 and $2,500 resistance levels.

  • Ethereum is showing a lot of positive signs above the $2,250 pivot zone.
  • The price is now trading above $2,300 and the 100 hourly simple moving average.
  • There was a break above a major contracting triangle with resistance near $2,330 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair seems to be aiming a larger increase above the $2,400 resistance zone in the near term.

Ethereum Price Eyes Fresh Increase

After a minor downside correction, ethereum found support near the $2,150 zone. ETH recovered losses and it later formed a decent support base above the $2,200 zone.

It started a fresh increase above the $2,250 resistance level. There was a clear break above the 76.4% Fib retracement level of the key decline from the $2,388 high to $2,158 low. There was also a break above a major contracting triangle with resistance near $2,330 on the hourly chart of ETH/USD.

Ether is now trading above $2,300 and the 100 hourly simple moving average. It is approaching the last swing high near the $2,388 zone. The first major resistance is near the $2,400 level.

Ethereum Price

Source: ETHUSD on TradingView.com

A close above the $2,400 level could start a major increase. The next key resistance could be $2,442. It is near the 1.236 Fib extension level of the key decline from the $2,388 high to $2,158 low. Any more gains could lead the price towards the $2,500 level. In the stated case, bitcoin price might also rally above $35,000.

Dips Supported in ETH?

If Ethereum fails to surpass the $2,400 resistance zone, it could start a downside correction. An immediate support on the downside is near the $2,330 level and the broken triangle zone.

The first major support is near the $2,300 level. Any more losses might call for a move towards the $2,250 support zone and the 100 hourly SMA. The next major support sits near the $2,200 level, below which there is a risk of a larger decline.

Technical Indicators

Hourly MACD The MACD for ETH/USD is now gaining pace in the bullish zone.

Hourly RSI The RSI for ETH/USD is currently well above the 50 level.

Major Support Level – $2,300

Major Resistance Level – $2,400



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