Ethereum Remains Strong, Why ETH Could Soon Test $2,000

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Ethereum traded to a new all-time high near $1,870 before correcting lower against the US Dollar. ETH price is holding gains and it is likely to accelerate higher towards $2,000.

  • ETH price traded in a strong uptrend and climbed above $1,850 lower against the US Dollar.

  • The price is trading nicely above the $1,750 level and the 100 simple moving average (4-hours).

  • There is a major bullish trend line forming with support near $1,800 on the 4-hours chart of ETH/USD (data feed via Kraken).

  • The pair is likely to continue higher above the $1,850 and $1,900 levels in the coming sessions.

Ethereum is Holding Gains

This past week, bitcoin and ethereum saw a steady increase above $1,700 and $45,000 respectively against the US Dollar. ETH traded to a new all-time high near $1,870 before it started a short-term downside correction.

The price traded below the $1,800 and $1,780 support levels. However, the bulls were active above the $1,750 level. A low is formed near $1,761 and the price is currently consolidating well above the 100 simple moving average (4-hours).

It is testing the $1,820 resistance level. It is close to the 50% Fib retracement level of the recent correction from the $1,870 high to $1,761 low. There is also a major bullish trend line forming with support near $1,800 on the 4-hours chart of ETH/USD.

On the upside, the first key resistance is near the $1,840 level. The 61.8% Fib retracement level of the recent correction from the $1,870 high to $1,761 low might also act as a resistance.

The next major resistance on the upside is near the $1,870 high. A clear break above the $1,850 and $1,870 levels will most likely open the doors for a steady increase. The next major target for the bulls in the near term could be the $2,000 handle.

Dips Supported in Ether (ETH)?

If Ethereum struggles to gain pace above the $1,850 level, it could correct lower. The first major support on the downside is near the trend line support and $1,800.

A downside break below the trend line support may possibly call for an extended decline below the $1,761 low. The next major support is near the $1,640 level or the 100 simple moving average (4-hours).

Technical Indicators

4 hours MACD – The MACD for ETH/USD is slowly losing momentum in the bearish zone.

4 hours RSI – The RSI for ETH/USD is still above the 50 level.

Major Support Level – $1,800

Major Resistance Level – $1,870

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