Ethereum Price Rides Bitcoin’s Wave, but Can It Stay Afloat?

Ethereum (ETH) has joined Bitcoin (BTC) on an upward trajectory, breaking above the $2,550 resistance level. However, while both crypto giants are experiencing gains, ETH’s strength appears to lag behind Bitcoin’s robust ascent.

The ETH/USD pair surged past the $2,600 mark, trading above the 100-hourly Simple Moving Average. A connecting bullish trend line has emerged with support at $2,520 on the hourly chart. This positive momentum suggests that ETH could continue its rally if it successfully clears the $2,630 and $2,650 resistance levels.

A Steady Ascent for Ethereum

Ethereum’s price action mirrors Bitcoin’s recent rally, forming a base above the $2,450 level before embarking on a fresh upward climb. The asset crossed the $2,500 and $2,550 resistance levels, registering a notable gain of over 5% and exceeding the $2,600 mark. This surge culminated in a high of $2,630, displaying bullish signals.

Currently, Ethereum is holding gains above the 23.6% Fibonacci retracement level of the upward move from the $2,487 swing low to the $2,630 high. The price remains above $2,550 and the 100-hourly Simple Moving Average, further bolstering the bullish sentiment.

Navigating Resistance Levels

While Ethereum exhibits positive momentum, it is facing resistance near the $2,630 level. The first significant hurdle lies at the $2,650 level. The main resistance zone is currently forming near $2,720. Breaking above this resistance could propel ETH towards the $2,880 level.

A sustained move above the $2,880 resistance might ignite further gains in the coming sessions, potentially driving the price towards the $2,950 resistance zone.

Downside Correction Potential

If Ethereum fails to break through the $2,650 resistance level, it could encounter a downside correction. Initial support on the downside is situated near the $2,595 level. The first major support zone lies near the $2,550 level, coinciding with the 50% Fibonacci retracement level of the upward move from the $2,487 swing low to the $2,630 high.

Falling below the $2,550 support level could push the price towards the $2,520 mark. Further losses might send the price towards the $2,450 support level in the near term. The next crucial support level sits at $2,320.

Technical Indicators

The hourly MACD for ETH/USD is gaining momentum in the bullish zone, indicating a positive trend.

The hourly RSI for ETH/USD is currently above the 50 level, suggesting that the asset is in overbought territory.

Key Levels to Watch

Major Support Level: $2,550

Major Resistance Level: $2,650