Ethereum Price Gathers Strength — Bulls Prepare for Upside Extension

Ethereum price started a fresh increase above the $2,450 zone. ETH is now back above $2,550 and might soon aim for more gains.

• Ethereum started a fresh increase above the $2,550 level.
• The price is trading above $2,575 and the 100-hourly Simple Moving Average.
• There is a short-term rising channel forming with support at $2,570 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could start a fresh increase if it remains supported above the $2,520 zone in the near term.

Ethereum Price Eyes More Gains

Ethereum price started a fresh increase above the $2,450 zone, like Bitcoin. ETH price gained pace for a move above the $2,550 resistance zone and entered a positive zone.

The bulls were able to push the price above the $2,620 resistance. However, there was no upside extension. A high was formed near $2,636 and the price corrected some gains. There was a move toward the 23.6% Fib retracement level of the upward move from the $2,373 swing low to the $2,636 high.

Ethereum price is now trading above $2,560 and the 100-hourly Simple Moving Average. Besides, there is a short-term rising channel forming with support at $2,570 on the hourly chart of ETH/USD.

On the upside, the price could face resistance near the $2,625 level. The next key resistance is near the $2,640 level. The first major resistance is near the $2,650 level. A clear move above the $2,650 resistance might send the price toward the $2,720 resistance.

An upside break above the $2,720 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $2,750 resistance zone or even $2,800 in the near term.

Another Decline In ETH?

If Ethereum fails to clear the $2,620 resistance, it could start a fresh decline. Initial support on the downside is near the $2,570 level. The first major support sits near the $2,520 zone.

A clear move below the $2,520 support might push the price toward the $2,500 support. Any more losses might send the price toward the $2,420 support level in the near term. The next key support sits at $2,350.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.

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

Major Support Level – $2,520

Major Resistance Level – $2,620

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