Ethereum's price has initiated a fresh increase from the $2,080 zone. The second-largest cryptocurrency has reclaimed the $2,400 level but now faces significant resistance near $2,550.
The digital asset has moved above $2,350 and the 100-hourly Simple Moving Average, signaling renewed bullish momentum. Technical analysis reveals a breakthrough above a key bearish trend line that had established resistance at $2,240 on the hourly ETH/USD chart.
For continued upward movement, Ethereum must now clear the critical resistance levels at $2,500 and $2,550.
Ethereum extended its previous losses below $2,200 before buyers emerged, mirroring Bitcoin's pattern. The cryptocurrency tested the $2,080 support zone before beginning a strong recovery rally. Bulls successfully pushed the price above multiple resistance levels at $2,200 and $2,320.
The breakthrough above the bearish trend line at $2,240 was followed by a surge past the $2,500 resistance level. Ethereum established a local high at $2,550 before entering a correction phase. The price has retraced below the 23.6% Fibonacci retracement level of the upward move from the $2,173 swing low to the $2,550 high.
Ethereum now trades above both $2,350 and the 100-hourly Simple Moving Average, maintaining its bullish posture despite the minor pullback.
On the upside, Ethereum faces immediate hurdles near $2,500. The first major resistance sits around $2,520, with the primary barrier forming at $2,550. A decisive break above this level could propel the price toward $2,650. Should bulls maintain momentum above $2,650, Ethereum could target the $2,780 resistance zone or potentially reach $2,850 in the near term.
The alternative scenario suggests potential downside if Ethereum fails to overcome the $2,550 resistance. Initial support exists near $2,400, with the first major support level at $2,360, coinciding with the 50% Fibonacci retracement level of the recent upward move. Breaking below $2,360 could trigger a decline toward $2,320. Further losses might drive the price to the $2,220 support level, with the next significant support resting at $2,080.
Technical indicators present a mixed picture. The hourly MACD for ETH/USD is losing momentum despite remaining in the bullish zone. Meanwhile, the hourly RSI stands above the 50 level, indicating moderate bullish sentiment.
Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.