Ethereum, one of the leading cryptocurrencies, has broken the $2,000 barrier in the crypto market as bullish momentum takes over. With a significant gain of over 7%, Ethereum is now trading above $2,000 against the US Dollar. This surge in price came after XRP, another popular cryptocurrency, experienced an impressive 80% jump and cleared the $0.90 mark.
The upward momentum for Ethereum began when it surpassed the $1,850 support zone, showcasing a strong upward trend. Currently, the price of Ethereum is trading above $1,980 and the 100-hourly Simple Moving Average, indicating a positive market sentiment.
The impressive price movement can be attributed to the break above a key contracting triangle, with resistance near $1,885, as shown on the hourly chart of ETH/USD. This breakout further strengthened Ethereum’s position and paved the way for potential gains.
Looking ahead, Ethereum’s price aims even higher as it remains well-supported above the $1,850 zone. With the surge in XRP and several other altcoins such as MATIC, SOL, BNB, and ADA, the overall market seems to be favoring an upward trajectory.
In terms of immediate resistance, Ethereum faces a hurdle near the $2,025 level. However, if it manages to surpass this resistance, there is a strong possibility of further upward movement towards the $2,050 and $2,120 resistance levels. Should the bullish momentum continue, Ether could even target the $2,200 level, followed by $2,250 and $2,350.
On the other hand, if Ethereum fails to clear the $2,025 resistance, it might experience a downside correction. The initial support level is near $2,000, followed by a major support zone around $1,980. Further down, the $1,945 level and the 50% Fib retracement level of the upward move from the $1,865 swing low to the $2,027 high act as crucial support levels. The $1,865 support could come into play if there are more substantial losses.
In terms of technical indicators, the MACD for ETH/USD is showing increasing momentum in the bullish zone, indicating a positive outlook. The RSI (Relative Strength Index) for ETH/USD is also above the 50 level, which further confirms the current bullish sentiment.
Overall, Ethereum’s price surge above $2,000 demonstrates the strong control of bullish investors in the crypto market. The cryptocurrency is trading above key support levels and has the potential to reach higher resistance levels in the near future. However, traders should also be cautious of potential dips and closely monitor support levels to mitigate risks.
