Why Ethereum Could Extend Its Rally If It Tests $2K
In terms of the US Dollar, Ethereum has risen over the $1,940 resistance zone. Ethereum has even risen beyond $2,000, suggesting that gains could be extended in the foreseeable future.
- Above the $1,920 and $1,940 marks, Ethereum began a recovery wave.
- The price is presently trading above the $1,920 hourly simple moving average and the 100 hourly simple moving average.
- On the hourly chart of ETH/USD, a connecting positive trend line is forming with support near $1,975. (data feed via Kraken).
- If the pair closes above the $2,000 resistance zone, gains could be extended.
The price of Ethereum has increased by 5%.
Above $1,850, Ethereum was able to maintain its support. The bulls were able to take the price above the $1,920 resistance zone after a steady rise.
Price even broke above the $1,940 resistance level and settled above the 100 hourly simple moving average. Finally, the price went as high as $2,010 after a burst above the $2,000 resistance. Ether’s gains have now been consolidated near the $2,000 mark.
It’s currently trading above the 23.6 percent Fib retracement level of the upward advance from the swing low of $1,874 to the high of $2,010. On the hourly chart of ETH/USD, a connecting positive trend line is forming with support near $1,975.
On the upside, the $2,000 level serves as an early resistance. Near the $2,040 mark, the next big resistance is found. A proper breakout to the upside above the $2,040 resistance level might propel the price much higher. In this scenario, the price of ether could surge to the $2,120 resistance level. Any further increases could push it towards the $2,200 resistance level.
In Ethereum, Are Dips Limited?
If ethereum fails to break through the $2,000 resistance level, it may begin a downtrend. On the downside, the trend line and the $1,975 zone provide first support.
Near the $1,940 level, the next big support is found. It’s around the 50% Fib retracement level of the upward advance from the swing low of $1,874 to the high of $2,010. A break below $1,940 on the downside might push the price towards $1,900. Near $1,860 and the 100 hourly simple moving average, the next important support is found.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is now losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now well above the 60 level.
Major Support Level – $1,940
Major Resistance Level – $2,000
Source: Newsbtc
Read more: https://blog.buyucoin.com/daily-crypto-news/eth-could-extend-its-rally-if-it-tests-2k/
Text source: BuyUcoin Blog
