Ethereum price is currently eyeing a fresh increase, following in the footsteps of Bitcoin’s recent surge. In order to continue this upward trajectory and potentially reach a new all-time high in the near term, ETH must surpass the crucial $2,665 resistance level.
After finding support near the $2,550 level, Ethereum price has started a new upward movement similar to Bitcoin. The price has managed to break above the $2,600 resistance level, although the gains are comparatively lower than those seen in BTC.
On the hourly chart of ETH/USD provided by Kraken, there was a notable break above a bearish trend line with resistance at $2,625. Additionally, Ethereum is currently trading above $2,620 and the 100-hourly Simple Moving Average, indicating a bullish sentiment in the market.
Despite these positive developments, Ethereum faces obstacles near the $2,665 level, which is located close to the 76.4% Fibonacci retracement level of the recent downward move from the $2,700 swing high to the $2,554 low. A successful breach of this resistance could pave the way for further gains.
If the price continues to rise and surpasses the $2,720 resistance level, it could potentially lead to a more significant uptrend in the near future. In this scenario, Ethereum might target the $2,780 and $2,850 resistance levels, with the possibility of reaching the $2,880 mark.
Conversely, if Ethereum fails to overcome the $2,665 hurdle, it could face another downward correction. The initial support levels to watch out for are $2,600 and the 100-hourly Simple Moving Average. A break below these levels could expose Ethereum to further losses towards $2,525 and potentially down to the $2,480 support level.
In terms of technical indicators, the hourly MACD for ETH/USD is showing signs of losing momentum in the bullish zone, indicating a potential shift in market sentiment. Additionally, the hourly RSI has dropped below the 50 zone, suggesting a weakening bullish momentum.
Overall, Ethereum price is currently at a critical juncture, with the $2,665 resistance level acting as a key determinant for its future direction. Traders and investors should closely monitor these levels and technical indicators to gauge the market sentiment and potential price movements in the coming days.
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