After 5% Surge, Is ETH Increase Just Getting Started?

Ethereum price recovered all losses and climbed above $2,050. ETH outperformed Bitcoin and might aim for more gains above the $2,120 resistance.

• Ethereum remained strong above $1,930 and started a fresh increase above $2,000.
• The price is trading above $2,020 and the 100-hourly Simple Moving Average.
• There was a break above a major bearish trend line with resistance near $1,980 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair is up over 5% and the bulls could aim for more upsides above $2,100.

Ethereum Price Turns Green

Ethereum price remained well-bid above the $1,930 support after a steady decline post report of Binance settlement. ETH formed a base and started a strong increase above the $2,000 resistance.

There was a break above a major bearish trend line with resistance near $1,980 on the hourly chart of ETH/USD. The pair gained strength and climbed above the $2,020 resistance. It gained over 5% and outperformed Bitcoin. Finally, it tested the $2,100 zone.

A high is formed near $2,092 and Ethereum is now consolidating gains. It is testing the 23.6% Fib retracement level of the upward move from the $1,930 swing low to the $2,092 high.

It is well above $2,020 and the 100-hourly Simple Moving Average. On the upside, the price is facing resistance near the $2,080 zone. The first key resistance is near the $2,120 level. A clear move above the $2,120 level could spark another strong increase.

Source: ETHUSD on TradingView.com

The next resistance is near $2,200, above which the price could aim for a move toward the $2,250 level. Any more gains could start a wave toward the $2,320 level.

Another Downside Correction in ETH?

If Ethereum fails to clear the $2,120 resistance, it could start a fresh decline. Initial support on the downside is near the $2,050 level. The next key support is $2,000 or the 50% Fib retracement level of the upward move from the $1,930 swing low to the $2,092 high.

The main support is now near $1,980. A downside break below the $1,980 support might trigger more losses. In the stated case, Ether could drop toward the $1,920 support zone in the near term.

Technical Indicators

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

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

Major Support Level – $2,000

Major Resistance Level – $2,120