Ethereum experienced a significant increase in price against the US Dollar, surpassing the $2,600 barrier. The ETH price is rising and may rise to $2,720.
- Ethereum established a base of $2,500, and then started an increase to $2,000.
- 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 main bearish trend line. Resistance is near $25,580. (Data feed via Kraken).
- In the short term, the pair may accelerate above $2,720 or $2,750.
Ethereum price gains pace
Ethereum was well-bought above $2,450. ETH saw a solid increase, and formed a base at the $2,500 mark. The resistance zone of $2,550 and $2,580 were breached.
The hourly chart of Ethereum/USD showed a breakout above the major bearish trendline with resistance at $2,580. The Ether price settled higher than the $2,600 mark and the 100-hourly simple moving average. Bulls drove the price to $2,700, and it reached a peak of $2,728.
It is consolidating gains at the $2,700 mark. The price is trading above 23.6% Fib Retracement of the upward movement from $2,445 swing high to $2,728 low.
Source: TradingView.com ETHUSD
The $2,725 area is the initial resistance. Near the $2,750 mark is the first significant resistance. Near the $2800 level could be the next major resistance, which would allow the price to accelerate. If this is the case, then the price may rise towards $2,880.
Is there a new decline in ETH?
Ethereum could see a correction if it fails to rise above the $2725 level. The $2,660 level is the initial support.
Next major support will be near the $2640 level and the 100-hourly simple moving average. Support is currently forming at the $2,580 area. This support is at the 50% Fib-retracement level, which marks the beginning of the upward trend from the $2.445 swing low to the $2.728 high. In the short term, any further losses could force a shift towards $2,500.
Indicators of technical importance
Hourly MACD – In the bullish zone, the MACD for USD/ETH is now growing at a rapid pace.
Hourly RSI – The RSI is at 60 for USD/ETH.
Major Support Level – $2,580
Major Resistance Level – $2,725