Ethereum is holding the $2,500 support zone against the US Dollar. ETH price could rise towards the $2,750 level unless there is a move below $2,450.
Ethereum managed to stay above the $2,480 and $2,500 support levels.
The price is still trading below $2,550 and the 100 hourly simple moving average.
There is a key bullish trend line forming with support near $2,500 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could start a decent increase if there is a clear move above $2,550 and $2,600.
Ethereum Price Holds Support
Ethereum attempted an upside break above the $2,640 and $2,650 resistance levels. ETH struggled to clear the $2,650 zone and started a downside correction.
There was a break below the $2,500 support zone and the 100 hourly simple moving average. Ether price even declined below the 23.6% Fib retracement level of the upward move from the $2,316 swing low to $2,639 high.
However, the bulls are now protecting the $2,500 support level. Besides, there is a key bullish trend line forming with support near $2,500 on the hourly chart of ETH/USD. It is consolidating, but it is still trading below $2,550 and the 100 hourly simple moving average.
An immediate resistance on the upside is near the $2,540 level and the 100 hourly simple moving average. The first major resistance is near the $2,560 level. A clear move above the $2,560 resistance might start a steady increase. In the stated case, the pair could even surpass the $2,600 level.
The next key hurdle could be $2,650, above which the bulls are likely to aim a larger increase towards the $2,750 and $2,800 levels.
Fresh Decline in ETH?
If ethereum fails to start a fresh increase above the $2,550 level, it could extend losses. An initial support on the downside is near the $2,500 level.
The first key support is now forming near the $2,450 level. It is near the 50% Fib retracement level of the upward move from the $2,316 swing low to $2,639 high. If there is a downside break below the $2,450 level, the price could accelerate lower.
Technical Indicators:
Hourly MACD – The MACD for ETH/USD is gaining pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now just below the 50 level.
Major Support Level – $2,450
Major Resistance Level – $2,550
