Ethereum Prints Bullish Pattern, Why Close Above $2,300 Is Crucial
Ethereum remained supported near the $2,150 zone against the US Dollar. ETH price is rising, but a close above $2,300 is important for upside continuation.
Ethereum found support near $2,150 and it started a fresh increase.
The price is back above the $2,200 zone and the 100 hourly simple moving average.
There was a break above a major contracting triangle with resistance near $2,260 on the hourly chart of ETH/USD (data feed via Kraken).
The pair is likely to gain strength if there is a close above the $2,300 and $2,320 levels.
Ethereum Price Resumes Upward Move
Ethereum remained well bid above the $2,150 and $2,120 support levels, similar to bitcoin. ETH price formed a base above $2,150 and it started a fresh increase.
There was a break above the $2,200 resistance the 100 hourly simple moving average. Ether surpassed the 50% Fib retracement level of the downside correction from the $2,431 swing high to $2,151 low. There was also a break above a major contracting triangle with resistance near $2,260 on the hourly chart of ETH/USD.
The pair is now trading near the $2,300 resistance. The first major resistance is near the $2,320 level. It is near the 61.8% Fib retracement level of the downside correction from the $2,431 swing high to $2,151 low.
Source: ETHUSD on TradingView.com
A close above the $2,320 level could set the pace for more gains. The next major barrier for the bulls could be near the $2,400 level, followed by $2,420. Any more upsides might call for a test of the $2,500 resistance zone in the near term.
Dips Limited in ETH?
If Ethereum fails to continue higher above $2,300 and $2,320, it could start a fresh decline. An initial support on the downside is near the $2,250 level.
The first major support is near the $2,220 level and the 100 hourly simple moving average. The main support is now forming near the $2,200 level. Any more losses could lead the price back towards the $2,150 support zone. If the bulls fail to protect the $2,150 support, there are high chances of a larger decline. The next major support sits near the $2,050 level.
Hourly MACD – The MACD for ETH/USD is now gaining pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now well above the 50 level.
Major Support Level – $2,200
Major Resistance Level – $2,320