Ethereum Price Eyes Key Upside Break
Ethereum (ETH) started a fresh rally and surpassed the $2,620 resistance. The price is consolidating gains and facing hurdles near $2,740.
In the previous technical analysis, we saw a decent increase in Ethereum above the $2,200 resistance zone. The price gained pace for a move above a key bearish trend line with resistance at $1,880 on the daily chart. The bulls even pumped the price above the $2,500 resistance.
However, it failed to clear the $2,740 resistance and the 50% Fib retracement level of the downward wave from the $4,094 swing high to the $1,385 low. Recently, there was a short-term downside correction to $2,320. A new base was formed, and the price started a fresh increase above $2,500, following Bitcoin’s rise to a new all-time high. It cleared a key bullish flag pattern with resistance at $2,580 on the same chart.
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Ethereum is now consolidating gains above the $2,550 resistance zone and the 50-day simple moving average (blue). The last three daily candles suggest the bulls are now aiming for a move above the $2,740 resistance zone.
If the bulls succeed, they could push the price toward the next major resistance at $3,000. The first key hurdle could be near the $3,060 level. It is close to the 61.8% Fib retracement level of the downward wave from the $4,094 swing high to the $1,385 low.
A close above the $3,060 level could set the pace for a move toward the $3,460 level. Any more losses could send Ether price toward the $4,000 handle in the coming days.
Another Downside Correction In ETH?
If Ethereum fails to clear the $2,740 resistance, there could be another downside correction. Immediate support on the downside is near the $2,620 level. The first major support sits near the $2,550 level and the same channel’s trend line. A daily close below the $2,550 level might spark a larger downside correction in Ethereum.
In the stated case, the price could drop and test the $2,320 support. If there is a clear move below the $2,320 support, ETH price might even decline and retest the 50-day simple moving average (blue) at $2,000.
Overall, Ethereum price shows bullish signs above $2,550. If the bulls gain traction, they could soon pump the price above $2,740 and $3,060. If not, there might be a short-term downside correction toward the $2,320 support level.