Ethereum Price Analysis: Consolidation Above Key Support Suggests Potential for Bullish Continuation
The price of Ethereum (ETH) has successfully identified a support foundation near the $2,350 mark, initiating a subsequent phase of appreciation.
Current market dynamics show ETH exhibiting upward momentum, with technical indicators suggesting a potential to challenge and surmount the resistance area demarcated around $2,580.
Following a notable ascent past the $2,480 and $2,500 thresholds, Ethereum is currently maintaining its position above $2,520 and, significantly, its 100-hourly Simple Moving Average.
Technical chart analysis for ETH/USD on an hourly basis (sourced from Kraken) indicates the development of a confluent bullish trend line, establishing immediate support at approximately $2,500.
Further bullish impetus could materialize should the asset decisively overcome the $2,585 resistance level in the short term.
Potential for Upward Trajectory
In a deviation from Bitcoin’s trajectory at the time, Ethereum’s price initially underwent a corrective downturn below the $2,500 psychological level.
This movement saw ETH trade beneath the support benchmarks of $2,480 and $2,460, although bullish sentiment remained evident near the $2,450 price zone, where a price floor was established at $2,445.
From this point, a renewed upward impetus commenced, driving the asset back above both the $2,480 and $2,500 price points.
Notably, this recovery has propelled the price beyond the 50% Fibonacci retracement level, calculated from the preceding downward movement between the $2,588 swing high and the $2,445 low.
Presently, Ethereum continues to trade above the $2,520 mark and its 100-hourly Simple Moving Average, with the aforementioned bullish trend line offering support around $2,500 on the hourly ETH/USD chart.
In terms of upward price potential, immediate resistance is anticipated around the $2,555 level, which aligns closely with the 76.4% Fibonacci retracement of the decline from the $2,588 swing high to the $2,445 low.
Beyond this, the subsequent significant resistance is identified near $2,585, with a primary major resistance point situated around $2,620.
A decisive upward breach of the $2,620 barrier could pave the way for an advance towards the $2,650 resistance level.
Sustained bullish momentum leading to a break above the $2,650 resistance could signal the potential for further appreciation in subsequent trading periods.
Under such conditions, Ether’s price might target the $2,720 resistance area or potentially extend towards $2,800 in the short-term outlook.
Consideration of a Corrective Decline
Conversely, should Ethereum encounter an inability to overcome the $2,620 resistance level, a renewed downward trajectory could commence.
In this scenario, initial downside support is projected near the $2,500 mark, aligning with the established trend line.
A more substantial support foundation is located in the vicinity of the $2,450 zone.
A definitive breach below the $2,450 support could exert downward pressure, potentially guiding the price towards the $2,420 support level.
Further sustained selling could lead to an extension of losses towards the $2,320 support area in the near term, with the subsequent key support benchmark identified at $2,250.
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