NEW DELHI (CoinChapter.com) — Ethereum (ETH) holds gains above major support at $2,500. The current price action is still bullish, and the bulls might soon aim for a move toward $4,000.
Ethereum Price Signals Strong Uptrend
Ethereum’s price steadily increased above the $2,160 pivot level in the past few weeks. ETH gained pace and traded above the $2,500 resistance zone to move further into a positive zone, like Bitcoin. The recent move was parabolic, and there are chances of more upsides.
The last Ethereum price analysis discussed how ETH could extend its rally and test the $2,850 resistance. The price did rise and tested the $2,880 zone. It is now consolidating near the 50% Fib retracement level of the last main decline from the $4,864 swing high to the $881 low.
The last weekly candle was very strong, signaling more upsides. Ethereum also follows a crucial parabolic curve with support at $2,580 on the weekly chart. More importantly, the price is well above the 50-week simple moving average (blue).
ETH could accelerate higher if it clears the $2,880 and $3,000 resistance levels. In the stated case, the first major resistance sits at $3,350. The next major target and resistance for the bulls could be $4,000.
The 76.4% Fib retracement level of the last main decline from the $4,864 swing high to the $881 low is also near the $4,000 zone. Any more gains may send ETH toward the $4,500 resistance zone.
Are Dips Limited In ETH?
Conversely, Ethereum might start a downside correction from the $3,000 resistance zone. The first major support on the downside is near the parabolic curve at $2,580. The next major support is nearly $2,500.
A weekly close below $2,500 might spark strong bearish moves in ETH. In the stated case, the bears might aim for a move toward the $2,160 support zone (the last breakout zone and a multi-touch region).
Overall, Ethereum price consolidates gains near the $2,880 and $2,900 levels. If the bulls remain active above $2,580, ETH might soon rally past $3,000 to test $3,350 and then $4,000 in the coming weeks.
