Ethereum (ETH) started a fresh increase and cleared the $2,740 resistance. The price is consolidating gains and might rise further above $2,880.
Ethereum Price Gains Traction
In the previous technical analysis, we saw a decent increase in Ethereum above the $2,500 resistance zone. The price gained pace for a move above the $2,650 resistance zone, but it failed to surpass the $2,740 resistance. It coincides with the 50% Fib retracement level of the downward move from the $4,094 swing high to the $1,385 low.
Finally, the bulls managed to clear the $2,740 resistance. The price even surpassed $2,800 and recently started a consolidation phase above the 50-day simple moving average (blue), outperforming Bitcoin.
Ethereum seems to be struggling to continue higher above the $2,800 resistance, but the $2,740 zone could now act as a support in the short-term. If the bulls remain in action, they could aim for a fresh increase.
Immediate resistance is near the $2,840 level. The first major resistance sits near the $2,880 zone. If there is a clear move above the $2,880 resistance, the price could drift toward the next major resistance at $3,000.
The next key resistance could be near the $3,060 level. A close above the $3,060 level could set the pace for a move toward the $3,450 level. It is close to the 76.4% Fib retracement level of the downward move from the $4,094 swing high to the $1,385 low. Any more losses could send Ether price toward the $3,750 level in the coming days.
Downside Correction In ETH?
If Ethereum fails to clear the $2,840 resistance, there could be another downside correction. Immediate support on the downside is near the $2,740 level. The first major support sits near the $2,340 level and a bullish trend line on the daily chart. It is also close to the 50-day simple moving average (blue).
A daily close below the $2,340 level might spark a larger downside correction in Ethereum. In the stated case, the price could drop and test the $2,120 support. If there is a clear move below the $2,120 support, ETH price might even decline and retest the $1,880 pivot level.
Overall, Ethereum price is showing bullish signs above the $2,740 level. If the bulls gain strength, they could soon pump the price above $2,880 and $3,000. If not, there might be a short-term downside correction toward the $2,340 support level.
