TA: Ethereum Consolidates Gains, Here’s What Could Spark A Fresh Rally
Ethereum is struggling to clear the $2,200 resistance zone against the US Dollar. ETH price is now consolidating and it is likely to start a strong rally above $2,200.
- Ethereum is trading in a positive zone above the $2,100 and $2,080 support levels.
- The price is now trading well above $2,100 and the 100 hourly simple moving average.
- There is a key bullish trend line forming with support near $2,125 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair remains well bid and it is likely to start a fresh rally above the $2,200 resistance.
Ethereum Price Is Holding Gains
Ethereum remained well offered near the $2,200 resistance zone. Recently, ETH failed to clear the $2,200 resistance, formed a high near $2,200, and corrected lower.
There was a drop below the $2,150 support level, but the price was well supported near the $2,100 level. A low was formed near $2,102 and the price is now moving higher. There was a break above the 50% Fib retracement level of the recent decline from the $2,200 high to $2,102 low.
Ether is now trading well above $2,100 and the 100 hourly simple moving average. There is also a key bullish trend line forming with support near $2,125 on the hourly chart of ETH/USD.
Source: ETHUSD on TradingView.com
On the upside, an immediate resistance is near the $2,175 level. It is near the 76.4% Fib retracement level of the recent decline from the $2,200 high to $2,102 low. The main hurdle is still near $2,200, above which the price is likely to start a strong rally. In the stated case, ether might jump 8%-10%.
Dips Limited in ETH?
If Ethereum fails to clear the $2,200 resistance, it could correct lower. The first major support is now forming near the $2,125 level, the 100 hourly SMA, and the trend line.
The main support is now near the $2,100 level. A clear downside break below the trend line support and the $2,100 zone could lead the price towards the $2,000 support level in the coming sessions. Any more losses will most likely call for a test of $1,940.
Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now well above the 50 level.
Major Support Level – $2,100
Major Resistance Level – $2,200