Ethereum Consolidates Near $2,800, Why ETH Could Rally Again

Ethereum rallied above $2,750 against the US Dollar. ETH price is now consolidating near $2,800 and might rise further above $2,850.

• Ethereum started a fresh increase above the $2,750 resistance level.
• The price is now trading above $2,750 and the 100 hourly simple moving average.
• There is a major bullish trend line forming with support near $2,775 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair is consolidating above $2,750 and might start another increase in the near term.

Ethereum Price Eyes More Upsides

Ethereum started a steady increase above the $2,700 resistance zone. ETH even cleared the $2,725 and $2,750 resistance levels to move further into a positive zone.

The price even spiked above the $2,800 level and settled above the 100 hourly simple moving average. A high was formed near $2,828 and the price is now consolidating gains. It corrected a few points below the $2,800 support zone.

There was a move below the 23.6% Fib retracement level of the upward move from the $2,635 swing low to $2,838 high. There is also a major bullish trend line forming with support near $2,775 on the hourly chart of ETH/USD.

Source: ETHUSD on TradingView.com

An immediate resistance on the upside is near the $2,800 level. The first major resistance is near the $2,830 level. Ether price must clear the $2,800 and $2,830 resistance levels to start another increase. In the stated case, the price may perhaps rise towards the $2,880 level. Any more gains might call for a move towards the main $3,000 resistance zone in the coming sessions.

Downside Correction in ETH?

If ethereum fails to start a fresh increase above the $2,830 level, it could start a downside correction. An initial support on the downside is near the trend line support and $2,775.

The next major support is near the $2,750. The main support is now near the $2,730 level. It is near the 50% Fib retracement level of the upward move from the $2,635 swing low to $2,838 high. A downside break below the $2,730 support zone might push the price further lower. In the stated case, the price might drop to $2,680.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is now losing pace in the bullish zone.

Hourly RSI – The RSI for ETH/USD is still above the 50 level.

Major Support Level – $2,730

Major Resistance Level – $2,830