The Ethereum cryptocurrency continues its impressive rally, decisively breaking the $2,000 resistance level, with indications of further upward momentum. Currently consolidating above $2,000, Ethereum could potentially start a fresh increase toward the $2,120 mark.
After surging past the $2,000 and $2,050 levels, Ethereum experienced a modest correction. Nevertheless, the digital coin holds firm, trading above the $2,020 mark and the 100-hourly Simple Moving Average. A crucial declining channel seems to be forming, with a support level near $2,000 on the hourly chart of ETH/USD.
Over the past week, Ethereum has robustly advanced, breaching the $2,000 level and outpacing Bitcoin in performance. Additionally, it cleared several hurdles near the $2,050 mark before trading to a new multi-week high at $2,137. However, a downside correction occurred, and the price declined below the $2,080 level, moving below the 23.6% Fib retracement level of the upward trend from the $1,906 to $2,137 range.
Despite this decline, Ethereum maintains its stance above the $2,020 mark and the 100-hourly Simple Moving Average. The formation of a key declining channel continues, with a support level near $2,000.
The crypto coin is facing resistance near the $2,060 level on the upside, with a channel region forming. The next major hurdle sits at the $2,085 mark. If this is cleared, prices could rise dramatically. Likely scenarios project a rally toward the $2,120 resistance, potentially reaching a key resistance near the $2,150 mark. From there, a move toward the $2,200 level may be in sight.
However, Ethereum’s journey may not be smooth sailing. If the digital asset fails to clear the $2,085 resistance zone, it might continue to drop downwards. Initial support on the decline is near the $2,025 mark and the 100-hourly Simple Moving Average, close to the 50% Fib retracement level of its upward surge from the $1,906 swing low to the $2,137 high.
Notably, the $2,000 mark provides the next key support level. A break below this support level could spark bearish moves. In such a case, Ethereum might touch the $1,930 support zone. Any further decreases could potentially result in a fall towards the $1,850 level.
As for technical indicators, both the MACD and RSI for ETH/USD suggest a potential loss of bullish momentum. The MACD seems to be losing momentum in the bearish zone and the RSI rests below the 50 level. These factors underline the significance of the major support level at $2,000 and the major resistance level at $2,085.
