Ethereum Tests $2K, Why ETH Could Extend Rally
Ethereum gained pace above the $1,940 resistance zone against the US Dollar. ETH even spiked above $2,000 and might extend gains 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.
- There is a connecting bullish trend line forming with support near $1,975 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could extend gains if there is a close above the $2,000 resistance zone.
Ethereum Price Gains 5%
Ethereum remained supported above the $1,850 level. There was a steady increase 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 high as $2,010. Ether is now consolidating gains near the $2,000 level.
It is trading above the 23.6% Fib retracement level of the upward move from the $1,874 swing low to $2,010 high. There is also a connecting bullish trend line forming with support near $1,975 on the hourly chart of ETH/USD.
Source: ETHUSD on TradingView.com
On the upside, an initial resistance is near the $2,000 level. The next major resistance is near the $2,040 level. A proper upside break above the $2,040 resistance might push the price further higher. In the stated case, ether price could rise towards the $2,120 resistance zone. Any more gains may perhaps send it towards the $2,200 resistance zone.
Dips Limited in ETH?
If ethereum fails to continue higher above the $2,000 resistance, it could start a downside correction. An initial support on the downside is near the $1,975 zone and the trend line.
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 downside break below the $1,940 level might send the price towards $1,900. The next major support sits 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