Ethereum continues its bullish momentum, mirroring Bitcoin’s surge above $41,000. After settling above $2,000, ETH has decisively broken past the $2,120 resistance, even flirting with the $2,200 mark. But can this rally be sustained, or is a correction on the horizon? Let’s dive into the technical analysis to uncover potential scenarios for Ethereum’s price action.
Ethereum’s Bullish Breakout: Key Levels to Watch
Ethereum’s recent surge has established a new multi-month high near $2,229. Currently, the price is consolidating these gains, trading comfortably above the 23.6% Fib retracement level of the recent upward move. A bullish trend line is forming with support around $2,190 on the hourly chart, adding further conviction to the upward trajectory.
Here’s a breakdown of the key resistance levels that could dictate Ethereum’s next move:
- Immediate Resistance: $2,220 zone
- Key Resistance 1: $2,250 level
- Key Resistance 2: $2,320 level. A break above this could propel ETH towards $2,450.
- Further Targets: $2,500, $2,650, and potentially $2,800 in an extended rally.
Read Also: Ethereum Network Destroys Over 105,000 ETH in One Month
Are Dips Supported? Analyzing Ethereum’s Downside Risks
While the bullish momentum is strong, it’s crucial to consider potential downside scenarios. If Ethereum fails to breach the $2,220 resistance, a correction could be initiated. Here’s a look at the key support levels to watch in case of a pullback:
- Immediate Support: $2,190 level (also the bullish trend line support)
- Key Support 1: $2,165 (76.4% Fib retracement level)
- Major Support: $2,120. A break below this could trigger a steeper decline.
- Critical Support: $2,050, followed by $2,000 in the near term.
Technical Indicators: A Deeper Dive
Let’s examine the technical indicators to gain further insights into Ethereum’s current state:
- Hourly MACD: Gaining momentum in the bullish zone, suggesting continued upward pressure.
- Hourly RSI: Currently above the 50 level, indicating positive momentum but not yet overbought.
Here’s a quick summary of the key levels:
- Major Support Level: $2,165
- Major Resistance Level: $2,220
Ethereum Price Prediction
Based on the current technical analysis, Ethereum’s short-term outlook remains bullish. A successful break above $2,220 could pave the way for further gains towards $2,320 and beyond. However, traders should remain vigilant and monitor the key support levels in case of a potential correction. A break below $2,120 could signal a shift in momentum and a deeper pullback.
Disclaimer: The information provided is not trading advice. Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
Disclaimer: The information provided is not trading advice, Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.