TA: Ethereum Regains Strength, Why ETH is Poised To Break $2,000
Ethereum is trading nicely above the $1,850 support against the US Dollar. ETH price is likely to start a strong increase above $1,900 and it could even clear the $2,000 resistance.
- Ethereum traded as high as $1,943 before correcting lower below $1,900.
- The price is now trading nicely above $1,850 and the 100 hourly simple moving average.
- There is a key bullish flag forming with resistance near $1,890 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is likely to start a strong rally if there is a close above the $1,900 resistance.
Ethereum Price Could Accelerate Higher
Ethereum traded above the $1,900 resistance when bitcoin climbed above $60,000. ETH traded as high as $1,943 before it faced sellers.
As a result, there was a downside correction below the $1,920 and $1,900 levels. Ether price even declined below the $1,880 support level. There was a break below the 23.6% Fib retracement level of the upward move from the $1,722 swing low to $1,943 high.
Ether is now trading nicely above $1,850 and the 100 hourly simple moving average. It is also holding the 50% Fib retracement level of the upward move from the $1,722 swing low to $1,943 high.
Source: ETHUSD on TradingView.com
There is also a key bullish flag forming with resistance near $1,890 on the hourly chart of ETH/USD. If there is an upside break above the flag resistance, there are chances of a strong increase above $1,900. The next key resistance is near the $1,950 level, above which the price may even clear the $2,000 resistance zone in the coming sessions.
Downside Break in ETH?
If Ethereum fails to continue higher above the $1,890 and $1,900 resistance levels, it could correct further lower. The first key support is near the $1,850 level.
The main support is now forming near the $1,830 level and the 100 hourly simple moving average. If there is a downside break below the $1,830 support, ether price might decline towards the $1,800 level. Any more losses could possibly call for a test of the key $1,750 support zone in the near term.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly gaining pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level – $1,830
Major Resistance Level – $1,900
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, @KhareemSudlow
