Ethereum Tests $2,000, Why ETH Could Extend Rally

Ethereum rose above the $1,940 resistance against the US Dollar. ETH even surged above $2,000 and could extend gains in the near term.

  • Ethereum started a recovery above $1,920 and $1,940.
  • The price is now above $1,920 and the 100 hourly simple moving average.
  • On the hourly chart of ETH/USD (data feed via Kraken), a connecting bullish trend line has formed near $1,975.
  • The pair is likely to extend gains if it closes above the $2,000 resistance zone.

Ethereum price up 5%

Ethereum still supported Above the $1,850 level. With a steady rise, the bulls were able to push the price above the $1,920 resistance.

The price even jumped above the $1,940 resistance and closed at 100 hourly simple moving averageFinally, there was a surge above the $2,000 resistance and the price was as high as $2,010. Ether is now consolidating gains near $2,000.

It is trading above the 23.6% Fib retracement level of the $1,874 swing low to $2,010 high. There is also a connecting bullish trend line forming support near $1,975 on the hourly chart of ETH/USD.

Source: ETHUSD on TradingView.com

On the upside, initial resistance is near $2,000. The next major resistance is near $2,040. A proper upside break above the $2,040 resistance is likely to push the price higher. In the aforementioned scenario, ether price could rise towards the $2,120 resistance zone. Any more gains could push it towards the $2,200 resistance zone.

ETH’s Dips are limited?

If Ethereum fails to continue above the $2,000 resistance, it could start a downside correction. Initial support on the downside is near the $1,975 area and the trendline.

The next major support is near $1,940. It is near the 50% Fib retracement level from the $1,874 swing low to $2,010 high. A break below the $1,940 level could push the price towards $1,900. The next major support is near $1,860 and the 100 hourly simple moving average.

Technical indicators

Hourly MACDThe MACD for ETH/USD is now losing momentum in the bullish zone.

Hourly RSIThe RSI for ETH/USD is now well above the 60 level.

Major Support Level – $1,940

Major Resistance – $2,000

Source link