NEW DELHI (CoinChapter.com) — Ethereum (ETH) extended its increase above the $2,550 resistance. The price is now correcting gains, but the $2,400 support could spark a fresh rally.
Ethereum Price Holds Uptrend Support
This past week, there were a few swing moves in Bitcoin, Ethereum, and a few other cryptocurrencies. BTC spot ETF approval failed to spark a strong increase in Bitcoin. Finally, the price saw a short-term downside correction below $45,000.
However, Ethereum remained strong and climbed higher above the $2,450 resistance. The bulls were able to clear the $2,550 level and the price settled well above the 50-day simple moving average (blue). A new multi-week high was formed near $2,715 before there was a pullback.
Ethereum trimmed some gains and traded below the $2,550 level. There was a move below the 23.6% Fib retracement level of the upward move from the $2,097 swing low to the $2,715 high.
However, the current price action and technical structure suggest that ETH is still holding the key uptrend support. The first major support sits near the $2,400 level. It represents a multi-touch zone and is also close to the 50% Fib retracement level of the upward move from the $2,097 swing low to the $2,715 high.
The next major support is now forming near the $2,350 zone. There is also a crucial bullish trend line forming with support at $2,340 on the daily chart. It is following the 50-day simple moving average (blue).
A downside break below the trend line support and then a close below the 50-day simple moving average (blue) could dent Ethereum’s current uptrend. In the stated case, there could be a drop toward the $2,130 support zone. Perhaps more losses may send the price toward the $1,980 pivot level in the coming weeks.
More Upsides in ETH?
Conversely, Ethereum might remain stable above $2,400 or $2,350 and attempt another increase. Immediate resistance on the upside is near the $2,630 level.
The main breakout resistance is now forming near $2,720. A convincing daily close above the $2,720 level might send ETH toward the $2,850 resistance. If the bulls clear the $2,850 hurdle, the price could see a surge toward the $3,000 handle in the coming days.
Overall, Ethereum price is consolidating gains and trading well above the 50-DSMA. The bulls might soon attempt a fresh rally toward $2,720 or even $2,850. If not, there might be a drop toward the $2,130 support.
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