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Ethereum Price Follows Bitcoin’s Rally, But Momentum Falls Short

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Ethereum price has started to rise again above the $2,550 resistance level. ETH follows Bitcoin’s rise, but lacks the same strength.

  • Ethereum started a nice increase above the $2,600 area.
  • The price is trading above the $2,550 level and the 100 hourly simple moving average.
  • There is a solid uptrend line forming with support at $2,520 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could continue rising if it crosses the $2,630 and $2,650 resistance levels.

The price of Ethereum begins to rise steadily

Ethereum price formed a base above the $2,450 level and started a new rally like Bitcoin. ETH rose above the $2,500 and $2,550 resistance levels to move into positive territory.

The price rose over 5% and there was a move above the $2,600 level. A top has been formed at $2,630 and the price is showing positive signs. It is maintaining its gains above the 23.6% Fib retracement level of the upward move from the swing low at $2,487 to the swing high at $2,630.

Ethereum price is now trading above the $2,550 level and the 100 hourly simple moving average. There is also a solid uptrend line forming with support at $2,520 on the hourly chart of the ETH/USD pair.

On the upside, the price appears to be facing hurdles near the $2,630 level. The first major resistance is near the $2,650 level. Major resistance is now forming near $2,720. A clear move above the $2,720 resistance level could send the price towards the $2,880 resistance level.

source: ETHUSD on TradingView.com

A bullish break above the $2,880 resistance may require further gains in the coming sessions. In the mentioned case, the Ether price may rise towards the $2,950 resistance area.

Correcting the downside in ETH?

If Ethereum fails to break above the $2,650 resistance level, it could start a downward correction. Initial support on the downside is near the $2,595 level. The first major support is near the $2,550 area or the 50% Fib retracement level of the upward move from the $2,487 swing low to the $2,630 swing high.

A clear move below the $2,550 support could push the price towards $2,520. Any further losses could send the price towards the $2,450 support level in the near term. The next major support is at $2,320.

Technical indicators

MACD per hourThe MACD indicator for ETH/USD is gaining momentum in the bullish zone.

Hourly RSIThe RSI for ETH/USD is now above the 50 area.

Key Support Level – $2,550

Major resistance level – $2,650

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