Ethereum Displays Bullish Momentum, Surpassing Bitcoin with Notable Price Gains
Ethereum (ETH) has demonstrated renewed strength, initiating a significant upward movement after establishing solid support at the $2,550 level.
The cryptocurrency has registered an increase of over 5% and is currently positioned to potentially challenge the $2,800 resistance threshold.
This recent rally has seen ETH overcome previous resistance points at $2,550 and $2,720.
Currently, Ethereum is trading near the $2,720 mark, near its 100-hourly Simple Moving Average.
Analysis of the hourly ETH/USD chart (data from Kraken) reveals the emergence of a new, upward-sloping trend line, which provides support at $2,610.
Further appreciation could be anticipated if the cryptocurrency manages to decisively breach the $2,800 resistance zone shortly.
Recent Upward Trajectory and Technical Observations
Commencing its ascent from the $2,550 support area, Ethereum has outperformed Bitcoin in recent price action.
ETH successfully reclaimed levels above the $2,620 and $2,650 resistance marks.
While the price briefly surpassed $2,720, selling pressure was encountered near the $2,785 resistance.
At present, Ethereum is consolidating its recent gains above the 23.6% Fibonacci retracement level, which is derived from the upward swing between the $2,610 low and the $2,787 high.
The current trading price of Ethereum is around $2,720, aligning with the 100-hourly Simple Moving Average.
The aforementioned bullish trend line, with support at $2,610 on the hourly chart, further supports the positive outlook.
In terms of upward targets, immediate resistance is anticipated near $2,780.
The next significant resistance level is situated around $2,800, with a more substantial barrier near $2,840.
A clear and sustained move above $2,840 could pave the way for a price advance towards the $2,880 resistance.
Should the $2,800 resistance be overcome, it could signal additional gains in subsequent trading sessions, potentially leading Ether towards the $2,920 resistance zone or even $2,950 in the short term.
Consideration of Potential Downward Corrections
Should Ethereum fail to overcome the $2,780 resistance, a new downward correction could ensue. Initial support in such a scenario would likely be found near the $2,700 level.
The first major support zone is located around $2,650, which aligns closely with the 76.4% Fibonacci retracement level of the recent upward movement from the $2,610 swing low to the $2,787 high.
A decisive break below the $2,650 support could see the price retract towards the $2,610 support level. Any further losses might push the price down to the $2,550 support in the near term, with the next key support identified at $2,500.
