After a close above the $1,550 level, Ethereum started a consolidation phase. A base was formed, and the price recently started a decent upward move, like Bitcoin. The price gained pace for a move above the $1,620 and $1,650 resistance levels.
The bulls pumped the price above the $1,750 resistance and the 50% Fib retracement level of the downward wave from the $2,105 swing high to the $1,385 low. However, the price now faces a couple of key hurdles near $1,840 and the 50-day simple moving average (blue).
Ethereum price daily chart | Source: ETH/USD on TradingView.com
Ethereum is up more than 15% with positive daily candles. If the bulls remain in action, they might attempt to clear the $1,840 resistance and the 50-day simple moving average (blue).
If they succeed, they could push the price toward the next major resistance at $1,920. There is also a connecting bearish trend line forming with resistance at $1,930 on the daily chart. The trend line is near the 76.4% Fib retracement level of the downward wave from the $2,105 swing high to the $1,385 low.
A clear move above the trend line resistance and $1,950 could send Ether price toward the $2,100 zone. The next resistance sits near the $2,280 level, above which the price could rise and test the $2,550 and the 1.618 Fib extension level of the downward wave from the $2,105 swing high to the $1,385 low.
Another Rejection In ETH?
If Ether fails to surpass the $1,840 resistance or the trend line, it could start another decline. Immediate support on the downside is near the $1,680 level. The first major support sits near the $1,620 level. A daily close below the $1,620 level might spark heavy bearish moves in Ethereum.
In the stated case, the price could drop and test the $1,400 support. If there is a clear move below the $1,400 support, ETH price might even decline and test the $1,220 support zone in the coming days.
Overall, Ethereum price shows bullish signs above $1,700. Having said that, the price must settle above $1,840 and then $1,950 to start a fresh medium-term uptrend.
