Ethereum Back to Square One, Why ETH Could Surge Again

Ethereum gained more than $2,650 in comparison to the US Dollar. The ETH price did not settle above $2700. However, gains were trimmed and are now near $2620.

  • Ethereum saw a new increase of $2,600 but was challenged by sellers over $2,700.
  • The price traded at $2,600 above the simple moving average of 100 hours.
  • On the hourly chart of Ethereum/USD, there was a breakout above the bearish trend line. Resistance is near $25,580. (Data feed via Kraken).
  • This pair has been consolidating at $2,600. It could see another rise in the short term.

Ethereum Price Consolidates

Ethereum formed a base that was above $2,520. ETH saw a new increase beyond the $2,600 resistance level and above $2,620. The $2,700 mark was reached.

The hourly chart for ETH/USD showed a breakout above the key bearish trendline with resistance at $2,580. The bulls did not remain active above $2720. It reached a record high of $2,733 before beginning a rapid decline.

A move below $2,700 or $2,650 was seen. Price fell just a little below 50% Fib Retracement levels of recent rallies from $2,506 swing lows to $2,733 highs.

The price consolidates above the $2,600 level and the 100-hourly simple moving average. Near the $2,650 area is a resistance to the upside. Near the $2,685 mark is the first significant resistance. Near the $2,700 level seems to be the principal resistance.

Ethereum Price

Source: TradingView.com, ETHUSD

For Ether to begin increasing steadily, it must pass the resistance levels of $2,685 & $2,700. If the previous scenario is true, then the price might rise towards $2,800.

New Decline in the ETH

Ethereum could experience another drop if it fails to increase beyond the $2650 level. The $2,610 level is the initial support for the downside.

Near the $2,600 support level is the next significant support. This is close to the 61.8% Fib level of the rally that took place from the $2.506 swing low and the $2.733 high. It could drop to $2,500 if it falls below the support level of $2,600.

Technical indicators

Minutely MACDMACD for Ethereum/USD has been losing speed in bullish zones.

Hourly RSIThe RSI of ETH/USD remains above 50.

Major Support Level – $2,600

Major Resistance Level – $2,700

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