Ethereum remained well bid and it broke the $2,500 resistance zone against the US Dollar. ETH price is likely to accelerate higher above $2,550 and $2,600 in the near term.
Ethereum is trading in a bullish zone above the $2,500 support level.
The price is now trading well above $2,450 and the 100 hourly simple moving average.
There is a key rising channel forming with support near $2,480 on the hourly chart of ETH/USD (data feed via Kraken).
The pair is likely to rise further above the $2,550 and $2,600 levels in the near term.
Ethereum Price Extends Gains
Ethereum gained pace and it settled nicely above the $2,400 resistance zone. ETH even cleared the $2,450 resistance and settled well above the 100 hourly simple moving average.
There was a clear break above the $2,500 level and the price tested the $2,550 zone. A high is formed near $2,545 and the price is consolidating gains. There is a key rising channel forming with support near $2,480 on the hourly chart of ETH/USD.
The channel support is close to the 23.6% Fib retracement level of the recent wave from the $2,175 low to $2,545 high. On the upside, the price is facing a major hurdle near the $2,550 level. A clear break above the channel resistance could set the pace for a test of the $2,650 zone.
Source: ETHUSD on TradingView.com
Any more gains could open the doors for a new all-time high above $2,700. In the stated case, ether price may possibly rise towards the $3,000 level. An intermediate resistance is also near the $2,800 zone.
Dips Limited in ETH?
If Ethereum fails to extend gains above $2,550, there could be a downside correction. An immediate support is near the $2,480 level and the channel trend line.
A downside break below the channel support could lead the price towards the $2,400 level and the 100 hourly simple moving average. Any more losses could lead the price towards the $2,350 zone in the coming sessions. An intermediate is near the $2,380 level, where the bulls are likely to take a strong stand.
Technical Indicators
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 – $2,450
Major Resistance Level – $2,550
