Ethereum (ETH) has been gaining momentum and is approaching the $2,000 mark against the US dollar. The price has surpassed $1,850 and the 100-hour simple moving average, indicating that it may continue to rise towards the $2,000 resistance level.
On the hourly chart of ETH/USD (data feed via Kraken), an important bullish trendline with support near $1,870 is forming. This suggests that the pair could move further above the $1,920 and $1,950 levels.
Ethereum has remained in a positive zone above the $1,780 support zone. It started a new rally and managed to surpass the $1,850 resistance level, outperforming Bitcoin in the process.
The price even climbed above the $1,900 mark and traded at a new multi-week high of $1,912. It is currently consolidating its gains and is trading near the 23.6% Fibonacci retracement level of the upward move from the swing low of $1,781 to the high of $1,912.
Ethereum is now trading above $1,850 and the 100-hour simple moving average. On the hourly chart of ETH/USD, there is also an important bullish trendline with support near $1,870.
On the other hand, the price is facing resistance near the $1,900 mark. The first major resistance is at $1,920. If ETH surpasses the $1,920 resistance, it could rise towards the $1,950 mark. Further gains could open the door for a test of the $2,000 level. The next significant resistance is at $2,050, above which the price could rise towards $2,120.
The question remains whether dips in Ethereum will be limited. If the price fails to surpass the $1,920 resistance, a downside correction could occur. The first support on the downside is near the $1,870 mark or the trendline. The next major support is at $1,850 or the 100-hour SMA. It is also near the 50% Fibonacci retracement level of the upward move from the swing low of $1,781 to the high of $1,912. A break below the $1,850 support could trigger a downward wave, with ETH potentially falling towards the $1,780 mark.
In terms of technical indicators, the hourly MACD for ETH/USD is losing momentum in the bullish zone. The hourly RSI is now above the 50 level.
In summary, Ethereum is gaining momentum and is approaching the $2,000 resistance level against the US dollar. It has surpassed $1,850 and the 100-hour SMA, indicating further bullishness. However, if it fails to surpass the $1,920 resistance, a downward correction could be seen. Traders will be closely watching the support levels at $1,870 and $1,850.
