TA: Here’s Why Ethereum (ETH) Follow Bitcoin and Rally Above $2,500

Ethereum is trading in a positive zone above the $2,400 support zone the 100 hourly SMA against the US Dollar. ETH price is likely to rally if there is a clear break above $2,500.

  • Ethereum is trading in a positive zone above the $2,400 and $2,420 support levels.
  • The price is now trading above $2,450 and the 100 hourly simple moving average.
  • There was a break above a major bearish trend line with resistance near $2,400 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could correct lower, but the price is likely to remain well bid above $2,400.

Ethereum Price Is Showing Positive Signs

After forming a base above $2,350, ethereum started a steady increase. ETH broke the $2,400 resistance zone and it settled nicely above the 100 hourly simple moving average.

However, ether struggled to gain pace similar to bitcoin. It climbed above the $2,450 and $2,500 resistance. There was also a break above a major bearish trend line with resistance near $2,400 on the hourly chart of ETH/USD.

The pair tested the $2,550 resistance and it is now correcting gains. It traded below the 23.6% Fib retracement level of the upward move from the $2,311 swing low to $2,554 high. Ether is now trading above $2,450 and the 100 hourly simple moving average.

Ethereum Price

Source: ETHUSD on TradingView.com

The first major support on the downside is near the $2,440 level. It is near the 50% Fib retracement level of the upward move from the $2,311 swing low to $2,554 high. On the upside, the price is facing resistance near the $2,520 level.

The main breakout resistance is now forming near the $2,550 level. A close above the $2,550 level could start a major increase towards the $2,680 level or even $2,750 in the near term.

Dips Supported in ETH?

If Ethereum fails to clear the $2,520 and $2,550 resistance levels, it could start a downside correction. An initial support on the downside is near the $2,450 level.

The main support is now forming near the $2,440 level and the 100 hourly SMA. A downside break below $2,450 may possibly put a lot of pressure on the bulls. The next key support is near the $2,400 level.

Technical Indicators

Hourly MACD The MACD for ETH/USD is slowly losing pace in the bullish zone.

Hourly RSI The RSI for ETH/USD is currently above the 50 level.

Major Support Level – $2,440

Major Resistance Level – $2,550



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