Ethereum (ETH) started a fresh rally above the $2,000 resistance. The price is up over 25% and might consolidate for some time before a fresh surge.
Ethereum Price Outpaces Bitcoin and Many Altcoins
In the previous technical analysis, we discussed the next possible key move in Ethereum. The price consolidated below a key bearish trend line on the daily chart. Finally, the bulls took control of the situation and pushed the price in a bullish direction.
The price cleared the mentioned bearish trend line and surpassed the $1,880 resistance. There was a swift upward move, and the price climbed above the $2,000 barrier, beating Bitcoin. More importantly, ETH climbed above the 50% Fib retracement level of the downward wave from the $2,860 swing high to the $1,385 low.
Ethereum is now consolidating gains above the $2,150 resistance zone and the 50-day simple moving average (blue). It is up over 25% and the last daily candle suggests a bullish reversal.
If the bulls remain in action, they might attempt another increase to clear the $2,250 resistance. If they succeed, they could push the price toward the next major resistance at $2,380. The next major resistance could be near the $2,500 level and 76.4% Fib retracement level of the downward wave from the $2,860 swing high to the $1,385 low.
A close above the $2,500 level could set the pace for a move toward the $2,860 swing high. Any more gains could send Ether price toward the 1.236 Fib extension level of the downward wave from the $2,860 swing high to the $1,385 low at $3,200.
Are Dips Supported In ETH?
If Ether fails to surpass the $2,250 resistance or $2,300, it could start a downside correction. Immediate support on the downside is near the $2,120 level. The first major support sits near the $2,000 level.
A daily close below the $2,000 level might spark another bearish wave in Ethereum. In the stated case, the price could drop and test the $1,880 support. If there is a clear move below the $1,880 support, ETH price might even decline and retest the 50-day simple moving average (blue).
Overall, Ethereum price shows bullish signs above $2,120. Having said that, the price must settle above $2,250 and then $2,300 to continue higher. If not, there might be a short-term downside correction toward the $2,000 pivot level.
