What could be causing a sharp rise?
Ethereum is consolidating below $2,600 against the US dollar. The ETH price needs to reach $2,600 and $2,620 to start a big rally in the near term.
Ethereum is still struggling to clear the USD 2,600 and USD 2,620 resistance levels. The price is now trading below $2,600 and the 100 hourly simple moving average. A large contracting triangle is forming with resistance near USD 2,590 on the ETH/USD hourly chart (data feed via Kraken). The pair needs to gain strength above USD 2,620 to show steady gains in the coming sessions.
Ethereum Price Nears Breakthrough
Ethereum remained below the key USD 2,600 and USD 2,620 resistance levels. However, ETH was also bid well above the $2,500 support level.
Its recent high was close to $2,595 before the price fell below $2,550. It traded as low as USD 2,538 and is currently consolidating losses. It is now trading below $2,600 and the 100 hourly simple moving average. An immediate resistance on the upside is near the USD 2,565 level.
The 50% Fib retracement level from the recent drop from the $2,595 swing high to $2,538 low is also near the $2,565 level. In addition, a large contracting triangle is forming with resistance near USD 2,590 on the ETH/USD hourly chart.
An intermediate resistance is near $2,575 and the 100 hourly simple moving average. It is close to the 61.8% Fib retracement level from the recent drop from the $2,595 swing high to $2,538 low.
Source: ETHUSD on TradingView.com
Ether price needs to clear the USD 2,575 and USD 2,600 resistance levels to start a steady rise. An immediate barrier could be USD 2,620, above which the bulls could be pursuing a strong rise.
New Drop in ETH?
If ethereum fails to start a fresh rise above the $2,600 level, it could spark another drop. An initial support on the downside is near the USD 2,540 level.
The next major support is near the $2,500 level. A close below the $2,500 support zone could put a lot of pressure on the bulls. The next major support could be near the USD 2,420 level, below which there is a risk of a move towards the USD 2,350 level in the coming days.
Hourly MACD – The MACD for ETH/USD is now losing pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now just below the 50 level.
Major Support Level – $2500
Major Resistance Level – $2620