Ethereum price gained traction and climbed above $2,350. ETH is now showing positive signs and might extend gains toward the $2,500 level.
Ethereum is gaining bullish momentum above the $2,350 zone.
The price is trading above $2,320 and the 100-hourly Simple Moving Average.
There was a break above a key rising channel forming with resistance near $2,350 on the hourly chart of ETH/USD (data feed via Kraken).
The pair might correct lower, but dips could be limited below the $2,335 support zone.
Ethereum Price Turns Green
Ethereum price formed a base above the $2,220 level and started a decent increase. ETH outperformed Bitcoin and was able to clear a few hurdles near the $2,350 level.
There was a break above a key rising channel forming with resistance near $2,350 on the hourly chart of ETH/USD. The bulls pumped the pair toward the $2,400 level. A high was formed near $2,389 and the price is now consolidating gains.
There was a minor decline below the $2,365 level. Ether dipped below the 23.6% Fib retracement level of the recent increase from the $2,282 swing low to the $2,389 high.
Ethereum is now trading above $2,320 and the 100-hourly Simple Moving Average. On the upside, the first major resistance is near the $2,380 level. The next major resistance is near $2,420, above which the price might rise and test the $2,485 resistance.
Source: ETHUSD on TradingView.com
If the bulls remain in action, they could even pump the price above the $2,550 resistance. In the stated case, the price could rise toward the $2,550 level.
Another Drop in ETH?
If Ethereum fails to clear the $2,380 resistance, it could start a downside correction. Initial support on the downside is near the $2,350 level and the channel trend line.
The next key support could be the $2,335 zone or the 50% Fib retracement level of the recent increase from the $2,282 swing low to the $2,389 high. A clear move below the $2,335 support might send the price toward $2,250. The main support could be $2,220. Any more losses might send the price toward the $2,120 level.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level – $2,335
Major Resistance Level – $2,380
