Ethereum Price Maintains Key Support — Is a Breakout Rally Brewing?

Ethereum price found support at $2,350 and started a fresh increase. ETH is now rising and might aim for a move above the $2,580 resistance zone.

• Ethereum started a decent increase above the $2,480 and $2,500 levels.
• The price is trading above $2,520 and the 100-hourly Simple Moving Average.
• There is a connecting bullish trend line forming with support at $2,500 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could gain strength if it clears the $2,585 resistance in the near term.

Ethereum price started a downside correction below the $2,500 level, unlike Bitcoin. ETH traded below the $2,480 and $2,460 support levels. However, the bulls were active near the $2,450 zone.

A low was formed at $2,445 and the price started a fresh increase. There was a move above the $2,480 and $2,500 levels. The price surpassed the 50% Fib retracement level of the downward wave from the $2,588 swing high to the $2,445 low.

Ethereum price is now trading above $2,520 and the 100-hourly Simple Moving Average. There is also a connecting bullish trend line forming with support at $2,500 on the hourly chart of ETH/USD.

On the upside, the price could face resistance near the $2,555 level. It is near the 76.4% Fib retracement level of the downward wave from the $2,588 swing high to the $2,445 low. The next key resistance is near the $2,585 level. The first major resistance is near the $2,620 level. A clear move above the $2,620 resistance might send the price toward the $2,650 resistance.

An upside break above the $2,650 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $2,720 resistance zone or even $2,800 in the near term.

If Ethereum fails to clear the $2,620 resistance, it could start a fresh decline. Initial support on the downside is near the $2,500 level and the trend line. The first major support sits near the $2,450 zone.

A clear move below the $2,450 support might push the price toward the $2,420 support. Any more losses might send the price toward the $2,320 support level in the near term. The next key support sits at $2,250.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now above the 50 zone.

Major Support Level – $2,450

Major Resistance Level – $2,620