Ethereum Tests $2K, Why ETH Could Extend Rally

Ethereum gained momentum above the $1940 resistance zone in relation to the US Dollar. ETH has risen to $2,000, and may extend its gains in the short term.

  • Ethereum experienced a wave of recovery above $1,920 and $1.940.
  • The current price trades above $1,920 as well as the simple 100 hour moving average.
  • A connecting bullish trendline is visible with support at $1,975 (data feed via Kraken).
  • A close above the $2,000 resistance area could allow for further gains.

Ethereum price gains 5%

Ethereum supported the $1850 level. The price rose steadily and bulls were successful in pushing it above $1,920.

Even higher than the $1,940 resistance, the price settled well above the 100-hourly simple moving average. The price reached as high as 2,010. Ether now has gains close to the $2,000 threshold.

The Fib Retracement Level of the Upward Move from $1,874 low to $2,010 high is 23.6%. On the hourly chart for ETH/USD, there is a bullish trend line connecting with support at $1,975

Ethereum Price

Source: TradingView.com ETHUSD

The $2,000 threshold is the first resistance. Near the $2,040 mark is the next significant resistance. Price could climb further higher if there is a strong upside breakout above $2,040. If the price rises above the $2,000.40 resistance, it could reach the $2,120 level. Any further gains could push it towards the $2,000.

Dips Limited in Ethereum?

It could begin a downtrend correction if ethereum does not rise above $2,000 resistance. Initial support for the downside lies near the trend line and in the $1,975 area.

It is close to the $1940 level. The 50% Fib level is the retracement of the upward movement from $1,874 low to $2,010 peak. The price could fall below $1,940 to push it towards $1,900. Near $1,860 is the next support and near the 100-hourly simple moving average.

Technical indicators

Hourly MACDMACD is currently losing momentum for the bullish area of ETH/USD.

Hourly RSIThe RSI is well over 60 for USD/ETH.

Major Support Level – $1,940

Major Resistance Level – $2,000

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