Ethereum is currently undergoing a period of consolidation above the $2,700 resistance level, hinting at the potential for bullish momentum should it surpass the $2,785 resistance zone.
At present, Ethereum is grappling with establishing a solid pace to break beyond the $2,800 mark. The cryptocurrency is trading above $2,700, staying above the 100-hourly Simple Moving Average, a key indicator of its short-term performance. A critical bullish trend line is forming, providing support at $2,720 on the hourly ETH/USD chart.
The cryptocurrency remained steady above the $2,650 threshold, forming a base that allowed it to embark on a gradual upward trajectory past the $2,720 level, even testing the waters near $2,820. After reaching a high at $2,820, Ethereum began correcting its gains, similar to Bitcoin’s recent movements. This involved a slight pullback below $2,780 and a dip beneath the 23.6% Fibonacci retracement level of its upward movement from the $2,536 swing low to the $2,820 high.
Ethereum is maintaining its position above $2,720 and the 100-hourly Simple Moving Average. A crucial bullish trend line is developing support at $2,720. However, another upward move for Ethereum may encounter resistance around the $2,780 level. The first significant resistance point stands at $2,820; a conclusive close above this could propel Ether towards the $2,880 resistance, with the next notable barrier near $2,950. Surpassing the $2,950 resistance could see the price climb to the $3,000 zone shortly.
However, if Ethereum falls short of overcoming the $2,780 resistance, it might enter another decline phase. Initial support on the downside is positioned near $2,720 and along the trend line, with the first major support around the $2,675 zone, corresponding to the 50% Fibonacci retracement level from the $2,536 swing low to the $2,820 high.
A decisive move below the $2,675 support may push the price down towards $2,620, where bullish investors could potentially re-emerge. Further losses might drive the price down to the $2,550 support level shortly, with the next critical support at $2,500.
Technical indicators provide further insight into Ethereum’s performance. The hourly MACD is losing momentum in the bullish zone, while the hourly RSI is currently above the 50 zone, indicating relatively stable momentum. Key support remains at $2,720, with major resistance pegged at $2,780.
