The price of Ethereum continues to demonstrate optimistic signs above the $2,620 zone, with the cryptocurrency currently trading over $2,650 and the 100-hourly Simple Moving Average. Ethereum’s performance has notably outshone Bitcoin, sparking speculation that the digital currency may soon see another increase.
A key contracting triangle appears to be forming, with a resistance level at $2,700 on the hourly chart of ETH/USD, based on data fed via Kraken. If Ethereum can settle above the $2,700 and $2,725 marks, it could potentially initiate a substantial upward trend.
Recently, Ethereum attempted a fresh surge above the $2,750 level, outpacing Bitcoin. The digital currency managed to break the $2,780 resistance, but unfortunately fell short of the $2,850 mark. A high was recorded at $2,847, after which the price began to decline. The cryptocurrency slipped below the $2,700 and $2,650 support levels, reaching a low of $2,605, and is now in a consolidation phase.
Despite these fluctuations, Ethereum’s price seems to be facing hurdles near the $2,700 level. The first significant resistance level is around the $2,725 mark, which corresponds to the 50% Fibonacci retracement level of the downward move from the $2,845 swing high to the $2,605 low.
If Ethereum can successfully push past the $2,755 resistance, it may well be on its way to the $2,850 mark. Should it break this barrier, the cryptocurrency could potentially see further gains, possibly rising towards the $3,000 or even $3,050 resistance zones.
On the flip side, if Ethereum is unable to clear the $2,725 resistance, it may face another decline. The initial support on the downside is near the $2,660 level, with a significant support level at the $2,600 zone. If the price drops below this level, it may move towards the $2,550 support, with further losses possibly driving it down to the $2,500 support level. The next key support level is at $2,440.
In terms of technical indicators, the MACD for ETH/USD is losing momentum in the bearish zone, while the RSI for ETH/USD is now above the 50 zone. The major support level is $2,660, and the major resistance level is $2,725.
As with any investment, it’s essential to stay informed and make informed decisions. Ethereum’s recent performance offers significant potential for both gains and risks, underscoring the need for careful consideration and strategic planning.
