Here’s Why Ethereum (ETH) Could Surge Above $2.7K and Test $3K

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Ethereum is stable above the $2,500 support zone and the 100 hourly SMA against the US Dollar. ETH price is likely to rally if there is a clear break above $2,700.

  • Ethereum is trading in a positive zone above the $2,500 and $2,520 support levels.
  • The price is now trading above $2,600 and the 100 hourly simple moving average.
  • There was a break above a short-term contracting triangle with resistance near $2,600 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could start a steady increase if it breaks the $2,750 resistance zone in the near term.

Ethereum Price Is Showing Positive Signs

Yesterday, ethereum gained pace above the $2,500 resistance zone. ETH broke the $2,600 resistance zone and it settled nicely above the 100 hourly simple moving average.

The price even traded close to the $2,750 level and a high was formed near $2,746. Recently, there was a downside correction below the $2,700 level. Ether declined below the 23.6% Fib retracement level of the upward move from the $2,275 swing low to $2,746 high.

The price tested the $2,500 support zone and the 100 hourly simple moving average. It also tested the 50% Fib retracement level of the upward move from the $2,275 swing low to $2,746 high.

Source: ETHUSD on TradingView.com

It is now rising and it reclaimed the $2,600 level. There was a break above a short-term contracting triangle with resistance near $2,600 on the hourly chart of ETH/USD. The pair is now facing resistance near the $2,650 level. The first major resistance is near the $2,700 level.

The main breakout resistance is now forming near the $2,750 level. A close above the $2,750 level could start a major increase towards the $2,850 level or even $3,000 in the near term.

Dips Supported in ETH?

If Ethereum fails to clear the $2,700 and $2,750 resistance levels, it could start a downside correction. An initial support on the downside is near the $2,550 level.

The main support is now forming near the $2,500 level and the 100 hourly SMA. A downside break below $2,500 may possibly put a lot of pressure on the bulls. The next key support is near the $2,450 level and a connecting bullish trend line.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is slowly gaining pace in the bullish zone.

Hourly RSIThe RSI for ETH/USD is currently above the 50 level.

Major Support Level – $2,500

Major Resistance Level – $2,750

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. AllStocksNews.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Stephen Phillips
He is a complete nerd and a graduate of computer science. He talks about cryptocurrency and blockchain.

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