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27 September, 2024

Ethereum Price Poised for Breakout: Can It Climb to New Highs?

27 September, 2024

Ethereum Price Eyes New Highs: Is a Breakout Imminent?

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Ethereum (ETH) is mirroring Bitcoin’s recent surge, showing promising signs of a potential breakout. For ETH to continue its upward trajectory and reach new highs, it needs to overcome the $2,665 resistance level.

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Currently, ETH is trading above the $2,620 mark and the 100-hourly Simple Moving Average. A positive development is the break above a connecting bearish trend line at $2,625 on the ETH/USD hourly chart (data feed via Kraken). To sustain this bullish momentum, the pair must maintain its position above the $2,600 support level.

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Signs of an Ethereum Breakout

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Ethereum found support around the $2,550 level and initiated a fresh increase, following Bitcoin’s lead. While ETH cleared the $2,600 resistance, its gains haven’t been as substantial as BTC’s. Nonetheless, the price has climbed above the 50% Fibonacci retracement level of the downward move from the $2,700 swing high to the $2,554 low.

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The break above the connecting bearish trend line at $2,625 on the ETH/USD hourly chart further strengthens the bullish outlook.

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Potential Hurdles and Targets

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ETH currently faces resistance near the $2,665 level, coinciding with the 76.4% Fibonacci retracement level of the downward move from the $2,700 swing high to the $2,554 low. The first major resistance lies near the $2,700 level, followed by the $2,720 mark.

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A successful breach above the $2,720 resistance could open the door for significant gains. In this scenario, Ether could potentially rally towards the $2,780 resistance zone in the near term. The next hurdles are anticipated near the $2,850 and $2,880 levels.

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Downside Risks

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If Ethereum fails to surpass the $2,665 resistance, it could trigger another decline. The initial support level on the downside sits near $2,600 and the 100-hourly Simple Moving Average. The first major support zone is located near the $2,550 level.

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A decisive move below the $2,550 support could push the price towards $2,525. Further losses could send the price down towards the $2,480 support level in the short term. The next key support level lies at $2,440.

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Technical Indicators

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  • Hourly MACD: The MACD for ETH/USD is losing momentum within the bullish zone.
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  • Hourly RSI: The RSI for ETH/USD is currently below the 50 zone.
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Key Levels

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  • Major Support Level: $2,600
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  • Major Resistance Level: $2,665
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