Ethereum ’s price has shown a positive trajectory as it begins to rise from the $2,300 support zone, indicating a potential for further gains. Currently, ETH is trading above the significant resistance levels of $2,350 and $2,420, with expectations of aiming for a breakthrough above $2,550 in the near term.
The recent rally saw Ethereum surpass the $2,400 level, driven by bullish momentum. This movement also crossed the 50% Fibonacci retracement level of the recent downward wave, giving traders renewed optimism. As it stands, Ethereum is trading above both $2,450 and the 100-hourly Simple Moving Average, with a bullish trend line in play that provides support at approximately $2,435.
However, ETH faces resistance near the $2,525 level, which coincides with the 61.8% Fibonacci retracement from a prior swing high of $2,656 to a low of $2,310. To maintain its upward trajectory, Ethereum needs to decisively breach this resistance zone, as such a move could propel prices toward $2,550.
A break above the $2,550 resistance may invite even more buyers, potentially leading to a rally towards the $2,650 range. The resistance around $2,720 to $2,740 could present additional challenges along the way.
Conversely, if Ethereum struggles to overcome the $2,525 resistance, it risks initiating a downward trend. Immediate support is found near $2,450, with significant support levels at $2,420 and the bullish trend line beneath it. If the price dips below $2,420, a further decline to around $2,350 or even $2,320 could follow, with a critical support level identified at $2,250.
Indicators suggest a strengthening bullish outlook, with the MACD gaining momentum and the Relative Strength Index remaining above neutral territory.
