Ethereum gained pace above the $1,940 resistance zone against the US Dollar. ETH even surged above $2,000 and could extend gains in the short-term.
Key takeaways
- Ethereum started a rally 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 uptrend line forming with support near $1,975 on the hourly ETH/USD chart (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 managed 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. Eventually, there was a rise 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% Fibonacci retracement level of the bullish move from the $1,874 low to the $2,010 high. There is also a connecting uptrend line forming with support near $1,975 on the hourly ETH/USD chart.
On the upside, initial resistance is near $2,000. The next major resistance is near $2,040. A proper bullish break above the $2,040 resistance could propel the price even higher. In the mentioned case, ether price can rise towards the $2,120 resistance zone. Further gains could perhaps send it towards the $2,200 resistance zone.
Any possible retracements?
If Ethereum fails to stay above the $2,000 resistance, it could start a downside correction. Initial support on the downside is near the $1,975 zone and trend line.
The next major support is near $1,940. It is close to the 50% Fibonacci retracement level of the bullish move from the $1,874 low to the $2,010 high. A break below $1,940 could propel the price to $1,900. The next major support is near $1,860 and the 100 hourly simple moving average.
Major technical indicators
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