Ethereum Is Testing $2K, Why ETH Could Extend The Rally
Ethereum gained pace above the $1,940 resistance zone against the US dollar. ETH even peaked above $2,000 and could boost profits in the near term.
Ethereum started a recovery wave above the $1,920 and $1,940 levels. The price is now trading above $1,920 and the 100 hourly simple moving average. A trailing bullish trendline is forming with support near $1,975 on the ETH/USD hourly chart (data feed via Kraken). The pair could extend gains if it closes above the USD 2,000 resistance zone.
Ethereum price gain 5%
Ethereum remained supported above the USD 1,850 level. There was a steady rise and the bulls were able to push the price above the $1,920 resistance zone.
The price even jumped above the $1,940 resistance and settled above the 100 hourly simple moving average. Finally, there was a spike above the $2,000 resistance and the price traded as low as $2,010. Ether is now consolidating gains near the $2,000 level.
It is trading above the 23.6% Fib retracement level from the upward move from the $1,874 swing low to $2,010 high. A trailing bullish trendline is also forming with support near $1,975 on the ETH/USD hourly chart.
Source: ETHUSD on TradingView.com
On the upside, an initial resistance is near the USD 2,000 level. The next major resistance is near the USD 2,040 level. A good upward breach above the USD 2,040 resistance could push the price further. In the mentioned case, ether price could climb towards the USD 2,120 resistance zone. More gains may send it towards the $2,200 resistance zone.
Dips limited in ETH?
If ethereum fails to continue above the $2,000 resistance, it could trigger a downside correction. An initial downward support is near the $1,975 zone and the trendline.
The next major support is near the $1,940 level. It is near the 50% Fib retracement level of the upward move from the $1,874 swing low to $2,010 high. A downward breach below the $1,940 level could send the price towards $1,900. The next big support is near $1,860 and the 100 hourly simple moving average.
Hourly MACD – The MACD for ETH/USD is now losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now well above the 60 level.
Major Support Level – $1,940
Major Resistance Level – $2,000