Ethereum Price Indicates New Rally Attempts as Traders Monitor Crucial Levels

Ethereum's price has initiated a significant rally beyond the $2,020 resistance level. Currently, ETH is consolidating its gains and may target further increases above $2,050.

Key Takeaways

Ethereum has initiated a fresh upward movement above the $1,980 resistance level.
The price currently trades above $2,000 and remains above the 100-hour Simple Moving Average.
A bearish trend line is forming, showing resistance at $2,040 on the ETH/USD hourly chart (data sourced from Kraken).
If the price stays below the $2,080 zone, it could face a potential decline.

Ethereum Price Signals Fresh Rally Attempt

Ethereum Price Correction to Support Levels

Ethereum's price successfully established a support base above $1,950, mirroring movements seen in Bitcoin. The price surged past both $2,020 and $2,050 resistance levels, with bulls pushing it even higher to over $2,120. A peak was reached at $2,158 before a price correction occurred. The price fell below $2,000, testing the 50% Fibonacci retracement level from the upward movement starting at $1,792 to the peak at $2,158 before bullish momentum took over again.

Currently, Ethereum is trading above $2,020 and the 100-hour Simple Moving Average. Should the bulls maintain their presence above $1,975, a further price increase could be likely. The immediate resistance can be found around the $2,040 level and the trend line.

Ethereum Price
Source: ETHUSD on TradingView.com

The first significant resistance level is around the $2,080 mark, followed by another major resistance at $2,120. A clear break above the $2,120 resistance could send the price soaring towards the $2,155 mark. If it surpasses the $2,155 threshold, Ethereum could see substantial gains in the days to come, potentially pushing towards the $2,220 resistance area or even as far as $2,250.

Potential Downside for ETH

If Ethereum fails to break through the $2,040 resistance, it may begin to decline. Initial downside support is around the $2,000 level, with stronger support being found closer to the $1,975 zone.

If the price drops below the $1,975 support, it could fall to the $1,935 support level or reach the 61.8% Fibonacci retracement level from the earlier surge that began at $1,792 and peaked at $2,158. Any continued losses may extend the decline towards the $1,900 region, with the main support potentially found at $1,880.

Technical Indicators

Hourly MACD: The MACD for ETH/USD is gaining traction in the bullish region.
Hourly RSI: The RSI for ETH/USD is currently situated above the 50 level.
Major Support Level: $1,975
Major Resistance Level: $2,080