Ethereum has initiated a significant upward movement, surpassing the $2,600 resistance level. The cryptocurrency is currently consolidating its gains, with the potential to target further highs above the $2,720 level.
The recent surge began as Ethereum established a solid base above $2,550, akin to the trend observed in Bitcoin . Following this, ETH managed to break through the $2,600 and $2,620 barriers, entering a more favorable zone. A notable high was recorded at approximately $2,719, though the price has since experienced a slight retraction, dipping below the $2,680 level. This minor decline brought the price under the 23.6% Fibonacci retracement level from a low of $2,489 to the recent high.
At present, Ethereum is trading above both the $2,600 level and the 100-hourly Simple Moving Average. A key bullish trend line has also formed, offering support around $2,540 on the hourly chart. Nevertheless, the price appears to be encountering resistance near the $2,650 level, with the first major hurdle to overcome being positioned around $2,700. Breaking past the critical $2,720 level could pave the way for the price to potentially reach the $2,880 resistance level.
If Ethereum successfully breaches the $2,880 resistance, it might trigger even more significant gains in the upcoming sessions, with targets possibly extending towards the $3,000 region.
Conversely, should Ethereum fail to navigate past the $2,650 resistance, a corrective downturn may ensue. Initial support is anticipated near the $2,600 level, closely followed by the midpoint Fibonacci retracement level. Should the price decline below the $2,540 level, it could lead to further drops toward the $2,500 and potentially the $2,450 support levels, with the next major support situated at $2,320.
