Ethereum Tests The $2,000 Mark, Why ETH Could Extend Bull Run

·1 year ago

Ethereum gained pace above the $1,940 resistance zone against the US Dollar. ETH even surged above $2,000 and could extend gains in the short-term.

Ethereum Tests The $2,000 Mark, Why ETH Could Extend Bull Run | Coinscreed

Key takeaways

Ethereum started a rally above the $1,920 and $1,940 levels.
The price is now trading above $1,920 and the 100 hourly simple moving average.
There is a connecting uptrend line forming with support near $1,975 on the hourly ETH/USD chart (data feed via Kraken).
The pair could extend gains if there is a close above the $2,000 resistance zone.

Ethereum Price Gains 5%

Ethereum remained supported above the $1,850 level. There was a steady increase and the bulls managed to push the price above the $1,920 resistance zone.

The price even jumped above the $1,940 resistance and settled above the 100-hourly simple moving average. Eventually, there was a rise above the $2,000 resistance, and the price traded as high as $2,010. Ether is now consolidating gains near the $2,000 level.

It is trading above the 23.6% Fibonacci retracement level of the bullish move from the $1,874 low to the $2,010 high. There is also a connecting uptrend line forming with support near $1,975 on the hourly ETH/USD chart.

On the upside, initial resistance is near $2,000. The next major resistance is near $2,040. A proper bullish break above the $2,040 resistance could propel the price even higher. In the mentioned case, ether price can rise towards the $2,120 resistance zone. Further gains could perhaps send it towards the $2,200 resistance zone.

Any possible retracements?

If Ethereum fails to stay above the $2,000 resistance, it could start a downside correction. Initial support on the downside is near the $1,975 zone and trend line.

The next major support is near $1,940. It is close to the 50% Fibonacci retracement level of the bullish move from the $1,874 low to the $2,010 high. A break below $1,940 could propel the price to $1,900. The next major support is near $1,860 and the 100 hourly simple moving average.