Ethereum (ETH) has shown signs of a fresh increase as it broke above the crucial $1,950 resistance level. The digital asset is now consolidating its gains and aims to surpass the $2,070 resistance in the near term.
Following a period of stability, Ethereum initiated a decent increase above the $1,900 level. In line with Bitcoin’s upward movement, ETH managed to surpass the key resistance levels of $1,950 and $1,960. Additionally, the price climbed above the $2,000 level, providing further bullish momentum. Moreover, the 100-hourly Simple Moving Average is now acting as strong support.
On the hourly chart of ETH/USD, a significant breakthrough occurred. The digital asset broke above a major bearish trend line near $2,010, indicating a shift in market sentiment. This breakout led to the formation of a higher high near $2,068. Although the price temporarily retraced, it remains above $2,000 and the 100-hourly Simple Moving Average.
Ethereum’s upward movement currently faces resistance near the $2,050 zone, with the first and critical level at $2,070. A clear breakthrough above this level could trigger further bullish moves for the cryptocurrency. If successful, the next resistance level to watch out for is $2,120. Additionally, the price could aim for the $2,200 level and potentially even breach the $2,250 mark, igniting a significant wave of positive sentiment.
In the event of the price failing to surpass the $2,070 resistance level, a fresh decline might occur. Initial support is expected at the $2,000 level, acting alongside the 100-hourly Simple Moving Average. Further down, the next key support level lies at $1,985, or the 50% Fib retracement level of the recent increase. The main support zone lies at $1,965. A breakdown below this level could initiate a bearish trend, leading Ethereum towards the $1,905 support level in the short term.
Technical Indicators
Two essential technical indicators point towards the current market conditions. The hourly MACD for ETH/USD shows a loss of momentum within the bullish zone, signaling potential consolidation or a temporary pause in upward movement. The hourly RSI for ETH/USD is currently above the 50 level, reflecting positive market sentiment.
Ethereum has witnessed a fresh increase and successfully broke above key resistance levels. With the digital asset consolidating its gains, the market’s attention shifts towards the $2,070 resistance level. A successful breakthrough could result in further bullish movement, opening up new potential targets for Ethereum. Conversely, failure to overcome this resistance level might trigger a decline towards the key support levels. As the cryptocurrency market evolves, it is crucial to monitor technical indicators and market sentiment to make informed investment decisions.