In recent trading sessions, Ethereum has shown strength by surpassing key resistance levels. Starting at $2,550, ETH managed to climb higher and breach the $2,650 level. This upward movement has been supported by a 100-hourly Simple Moving Average, indicating a bullish trend.
A connecting bullish trend line has formed with support at $2,695 on the hourly chart of ETH/USD. This trend line, combined with the current momentum, suggests that Ethereum could potentially clear the $2,750 resistance zone. If this level is breached, ETH may see further gains in the near term.
Despite the positive momentum, it is essential to consider potential obstacles that Ethereum might face. The MACD for ETH/USD is showing signs of losing momentum in the bullish zone, indicating a possible slowdown in price increase. Additionally, the RSI for ETH/USD is currently above the 50 zone, suggesting a slightly overbought market.
If Ethereum fails to clear the $2,750 resistance level, a downside correction could be on the horizon. Initial support is expected near $2,700 and the trend line. However, if this support is broken, the price may drop towards $2,640 and the 50% Fib retracement level. Further losses could lead ETH towards the $2,580 and $2,520 support levels.
On the flip side, if Ethereum continues its upward trajectory and successfully surpasses the $2,750 resistance zone, it could target the $2,880 and $2,920 resistance levels. A break above $2,920 might propel the price towards the coveted $3,000 zone.
Ethereum has shown resilience and strength in recent trading sessions, surpassing key resistance levels and showing potential for further gains. However, it is essential to monitor technical indicators and potential roadblocks to assess the risk of a downside correction. Whether Ethereum continues its upward trend or faces a pullback remains to be seen, but the current market conditions suggest a promising outlook for ETH in the near term.