Ethereum tests $2K, why ETH could extend the rally

Ethereum gained pace above the $1,940 resistance zone against the US Dollar. ETH even broke above $2,000 and could extend short-term gains.

• Ethereum started a recovery wave above the $1,920 and $1,940 levels.
• The price is now trading above $1,920 and the 100 hourly simple moving average.
• There is a connecting uptrend line forming with support near $1,975 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could extend the gains if there is a close above the $2,000 resistance zone.

Ethereum price gains 5%

Ethereum remained above the $1,850 level. There was a steady rise and the bulls were able to push the price above the $1,920 resistance zone.

The price even jumped above the $1,940 resistance and settled above the 100 hourly simple moving average. Finally, there was a spike above the $2,000 resistance and the price traded up to $2,010. Ether is now consolidating gains near the $2,000 level.

It is trading above the 23.6% Fibonacci retracement level of the upward move from the $1,874 low to $2,010 high. There is also a connecting bullish trend line forming with support near $1,975 on the hourly chart of ETH/USD.

Source: ETHUSD on TradingView.com

On the upside, an initial resistance is near the $2,000 level. The next major resistance is near the $2,040 level. A proper bullish break above the $2,040 resistance could send the price further higher. In the indicated case, the price of ether could rise towards the resistance zone of $2120. Any further gains could perhaps send it towards the $2,200 resistance zone.

Limited dips in ETH?

If ethereum fails to continue above the $2,000 resistance, a downside correction could start. An initial support on the downside is near the $1,975 zone and the trend line.

The next big support is near the $1,940 level. It is near the 50% Fibonacci retracement level of the up move from the $1,874 low to $2,010 high. A break below the $1,940 level could send the price to $1,900. The next major support lies near $1,860 and the 100 hourly simple moving average.

technical indicators

MACD per hour – The MACD for ETH/USD is now losing momentum in the bullish zone.

RSI per hour – The RSI for ETH/USD is now well above the 60 level.

Major Support Level: $1,940

Highest resistance level: $2,000