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TA: Ethereum Holds Strong At $2.5K: Indicators Show Fresh Increase

Posted on by admin
31
Jan

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.

Source: ETHUSD on TradingView.com

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

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