Ethereum, the world’s second-largest cryptocurrency by market capitalization, has shown signs of a strong recovery as its price started a fresh increase above the $1,950 resistance level. The digital asset remained stable and consolidated its gains, leading to a breakout above the $2,000 mark and the 100-hourly Simple Moving Average.
A major bullish breakout was confirmed with the break above a key bearish trend line near $2,010 on the hourly chart of ETH/USD. This breakout highlighted the strength of the bulls and signaled a potential upward movement in the Ethereum price. As a result, the cryptocurrency’s value reached a high of around $2,068 before entering a consolidative phase.
On the upside, Ethereum is currently facing resistance near the $2,050 zone, with the first key resistance level situated at $2,070. A clear move above this level could spark further bullish momentum and potentially push the price towards the $2,200 and $2,250 levels. However, if the $2,070 resistance level cannot be overcome, Ethereum could face a potential decline.
In the event of a bearish turn, Ethereum has strong support near the $2,000 level and the 100-hourly Simple Moving Average. The next crucial support is seen at $1,985, which represents the 50% Fibonacci retracement level of the recent upward move. The main support lies at $1,965, and a downside break below this level might trigger further losses. A bearish scenario could potentially push Ethereum towards the $1,905 support zone in the near term.
The hourly MACD for ETH/USD is currently losing momentum in the bullish zone, indicating a potential decrease in buying pressure. Additionally, the hourly RSI for ETH/USD is now above the 50 level, suggesting that the bulls still maintain control, but momentum may be weakening.
Overall, Ethereum has shown resilience in its recovery journey, surpassing key resistance levels and entering a consolidation phase. While the $2,070 resistance level remains a crucial hurdle for further upside, the cryptocurrency’s ability to hold above $2,000 and the 100-hourly Simple Moving Average provides some comfort to the bulls. Traders and investors will closely monitor price movements and key support levels to gauge Ethereum’s next move in the coming days.