Ethereum (ETH) started a fresh rally and tested the $2,740 resistance. The price is consolidating gains and might find bids near $2,320.
Ethereum Price Eyes Fresh Increase
In the previous technical analysis, we saw a decent increase in Ethereum above the $2,320 resistance zone. The price gained pace for a move above the key barrier at $2,500 daily chart. The bulls even pumped the price above the $2,550 resistance.
However, ETH failed on a couple of occasions to clear the $2,740 resistance and the 50% Fib retracement level of the downward move from the $4,094 swing high to the $1,385 low. As a result, there was a consolidation phase and minor decline, like Bitcoin.
Ethereum is now consolidating gains above the $2,500 zone and the 50-day simple moving average (blue). Besides, there seems to be a rising channel forming with support at $2,500 on the daily chart.
If the bulls remain in action, they could aim for a fresh increase. Immediate resistance is near the $2,650 level. The first major resistance sits near the $2,740 zone. If there is a clear move above the $2,740 resistance, the price could drift toward the next major resistance at $3,000.
The next key hurdle could be near the $3,060 level. It is close to the 61.8% Fib retracement level of the downward move from the $4,094 swing high to the $1,385 low.
A close above the $3,060 level could set the pace for a move toward the $3,350 level. Any more losses could send Ether price toward the $3,450 level in the coming days.
More Losses In ETH?
If Ethereum fails to clear the $2,740 resistance, there could be another downside correction. Immediate support on the downside is near the $2,500 level. The first major support sits near the $2,320 level and a bullish trend line on the daily chart.
A daily close below the $2,320 level might spark a larger downside correction in Ethereum. In the stated case, the price could drop and test the $2,220 support. If there is a clear move below the $2,220 support, ETH price might even decline and retest the 50-day simple moving average (blue) at $2,080.
Overall, Ethereum price is struggling near the $2,740 level. If the bulls gain strength, they could soon pump the price above $2,740 and $3,060. If not, there might be a short-term downside correction toward the $2,320 support level.
