TA: Why Ethereum is Primed To Revisit $2,000 and New ATH

Ethereum extended its increase above the $1,750 and $1,800 resistance levels against the US Dollar. ETH price is showing positive signs and it is likely to revisit the $2,000 resistance zone.

  • Ethereum is gaining bullish momentum above the $1,700 and $1,800 resistance levels.
  • The price is now trading well above $1,800 and the 100 hourly simple moving average.
  • There is a crucial bullish trend line forming with support near $1,750 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could correct lower, but there are high chances of a move towards the $2,000 zone.

Ethereum Price Surges 5%

Ethereum remained in a positive zone above the $1,650 resistance after yesterday’s upside break, similar to bitcoin. ETH gained bullish momentum and it even broke the $1,700 resistance level.

As a result, the bulls took over and the price surged above the $1,800 level. It traded to a new weekly high near $1,858 and it is showing positive signs. Ether is now trading well above $1,800 and the 100 hourly simple moving average.

An initial support is near the $1,810 level. It is close to the 23.6% Fib retracement level of the recent increase from the $1,649 swing low to $1,858 high.

There is also a crucial bullish trend line forming with support near $1,750 on the hourly chart of ETH/USD. The trend line is close to the last breakout zone at $1,750. The 50% Fib retracement level of the recent increase from the $1,649 swing low to $1,858 high is also near $1,750.

Ethereum Price

Source: ETHUSD on TradingView.com

On the upside, the $1,880 level is an immediate hurdle for the bulls. A clear break above the $1,880 level could open the doors for more gains above the $1,900 level. In the stated case, the price could rally above the $1,950 level. The next key resistance is near the $2,000 level.

Dips Supported in ETH?

If Ethereum fails to continue higher above the $1,880 and $1,900 resistance levels, it could start a downside correction. An initial support on the downside is near the $1,810 level.

The main support is now forming near the trend line and $1,750. If there is a downside break below the trend line support, there is a risk of a drop towards the $1,650 support.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is showing positive signs in the bullish zone.

Hourly RSIThe RSI for ETH/USD is now well above the 60 level.

Major Support Level – $1,750

Major Resistance Level – $1,880

Publication date: 
03/09/2021 - 07:08
Author: 
Disclaimer

The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.