TA: Ethereum Rallies 10%: Why More Gains Seem Possible

Ethereum started a steady increase above the $2,650 resistance against the US Dollar. ETH price could rise further if there is a clear move above the $2,800 level.

Ethereum gained pace above the $2,600 and $2,650 resistance levels.
The price is still trading above $2,650 and the 100 hourly simple moving average.
There is a major bullish trend line forming with support near $2,580 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could extend increase if it surpasses the $2,800 resistance zone.

Ethereum Price Gains Momentum

Ethereum remained well bid near the $2,500 level. As a result, ETH started a steady increase above the $2,600 resistance zone, similar to bitcoin. The bulls pumped the price above the $2,650 barrier and the 100 hourly simple moving average.

The upward move was such that the price even moved above the $2,700 level. A high is formed near $2,766 and ether price is now consolidating gains. It is trading well above the 23.6% Fib retracement level of the upward move from the $2,478 swing low to $2,766 high.

Besides, there is a major bullish trend line forming with support near $2,580 on the hourly chart of ETH/USD. The pair is also trading above $2,650 and the 100 hourly simple moving average.

Source: ETHUSD on TradingView.com

An immediate resistance on the upside is near the $2,780 level. The first major resistance is near the $2,800 level. A clear move above the $2,800 resistance might push the price further higher. In the stated case, the pair could even surpass the $2,850 level.

The next key hurdle could be $2,920, above which the bulls may perhaps aim a test of the key $3,000 resistance zone in the near term.

Dips Limited in Ethereum?

If ethereum fails to start afresh increase above the $2,780 level, it could start a downside correction. Initial support on the downside is near the $2,700 level.

The first key support is now forming near the $2,640 level. It is near the 50% Fib retracement level of the upward move from the $2,478 swing low to $2,766 high. If there is a downside break below the $2,640 level, the price moves down towards the $2,500 level.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is gaining pace in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now well above the 50 levels.

Major Support Level – $2,650

Major Resistance Level – $2,780

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