TA: Ethereum Holds Strong Above $2K, Why Rally Isn’t Over Yet

TA: Ethereum Holds Strong Above $2K, Why Rally Isn’t Over Yet

Ethereum traded to a new all-time high at $2,140 before correcting lower against the US Dollar. ETH price is now holding gains above the $2,000 support zone.

  • Ethereum is showing a lot of positive signs above the $2,000 support zone.
  • The price is now well above the $2,000 support and the 100 hourly simple moving average.
  • There is a key bearish trend line forming with resistance near $2,075 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair is likely to start a fresh increase as long as there is no close below the $2,000 support zone.

Ethereum Price Remains In Strong Uptrend

Ethereum followed a bullish path after there was a clear break above the $1,950 resistance, unlike bitcoin. ETH broke many important hurdles near the $2,000 to move further into a positive zone.

The price gained bullish momentum and it even cleared the $2,100 level. Ether traded to a new all-time high near $2,140 before starting a downside correction. It broke the $2,050 support level, but the bulls were active near the $2,000 zone.

The price is now well above the $2,000 support and the 100 hourly simple moving average. It broke the 50% Fib retracement level of the recent decline from the $2,140 swing high to $1,981 low.

Ethereum Price

Source: ETHUSD on TradingView.com

However, the bears are protecting the $2,100 zone. The price struggled near the 61.8% Fib retracement level of the recent decline from the $2,140 swing high to $1,981 low. There is also a key bearish trend line forming with resistance near $2,075 on the hourly chart of ETH/USD.

On the downside, there is a major support forming near the $2,000 level and the 100 hourly SMA. As long as there is no downside break below $2,000, ether is likely to start a fresh increase above the $2,100 level.

Major Correction in ETH?

If Ethereum fails to stay above the $2,000 support and the 100 hourly SMA, there is a risk of a downside break. The first major support is near the $1,980 level.

Any more losses might lead ether price towards the $1,900 support zone. If the bulls fail to protect $1,900, there could be a test of the $1,850 support zone in the near term.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is now gaining momentum in the bearish zone.

Hourly RSIThe RSI for ETH/USD is well below the 50 level.

Major Support Level – $2,000

Major Resistance Level – $2,100

Did you like this?
Tip Bitcoin Tradeboard with Cryptocurrency

Donate Bitcoin to Bitcoin Tradeboard

Scan to Donate Bitcoin to Bitcoin Tradeboard
Scan the QR code or copy the address below into your wallet to send some bitcoin:

Donate Bitcoin Cash to Bitcoin Tradeboard

Scan to Donate Bitcoin Cash to Bitcoin Tradeboard
Scan the QR code or copy the address below into your wallet to send bitcoin:

Donate Ethereum to Bitcoin Tradeboard

Scan to Donate Ethereum to Bitcoin Tradeboard
Scan the QR code or copy the address below into your wallet to send some Ether:

Donate Litecoin to Bitcoin Tradeboard

Scan to Donate Litecoin to Bitcoin Tradeboard
Scan the QR code or copy the address below into your wallet to send some Litecoin:

Donate Monero to Bitcoin Tradeboard

Scan to Donate Monero to Bitcoin Tradeboard
Scan the QR code or copy the address below into your wallet to send some Monero:

Donate ZCash to Bitcoin Tradeboard

Scan to Donate ZCash to Bitcoin Tradeboard
Scan the QR code or copy the address below into your wallet to send some ZCash: