NEW DELHI (CoinChapter.com) — Ethereum (ETH) is consolidating gains above $2,000. The current price action is positive, and a close above $2,150 could spark a strong rally.
Ethereum (ETH) Price Reaches Key Juncture
In April 2023, Ethereum (ETH) price struggled to clear the $2,150 resistance zone. It traded as high as $2,146 before there was a downside correction. ETH declined below the $2,000 and $1,850 levels.
There was a move below the 23.6% Fib retracement level of the upward move from the $881 swing low to the $2,146 high. The price even spiked a couple of times below the $1,650 level and the 50-week simple moving average (blue).
However, Ethereum (ETH) price bulls remained active above the $1,500 support zone. The price found support near the 50% Fib retracement level of the upward move from the $881 swing low to the $2,146 high.
A fresh support base was formed above $1,500, and Ethereum (ETH) price started a steady increase in October 2023, like Bitcoin. The last five candles were bullish, and the price gained strength above $1,800. It even cleared a key bullish flag with resistance at $1,800 on the weekly chart.
Ethereum is again retesting the main resistance at $2,150. If the bulls succeed in clearing the $2,150 hurdle, it could start a sustained uptrend. The first resistance above $2,150 is near the $2,500 level.
A weekly close above $2,150 and then $2,500 could open the doors for an 80% increase toward the $3,500 resistance zone. Any more gains may possibly send ETH toward the $5,000 resistance zone.
Another Rejection?
Conversely, Ethereum (ETH) price might again fail to clear the $2,150 resistance zone. In this case, there might be a minor drop below the $2,000 support. The first major support is near the flag zone and the 50-week simple moving average (blue) at $1,700.
If the bulls fail to protect the $1,700 support, ETH might form a double-top pattern and increase the chances of a major decline. The next key support is $1,500. Any more losses might call for a test of $1,120.
Overall, Ethereum price is attempting a crucial upside break above $2,150. If it succeeds, there could be a drift toward $3,500 in the coming weeks. Conversely, ETH might retest the $1,700 support.
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