Ethereum outpaces Bitcoin (BTC), ETH Likely to Surpass $2,880

Ethereum (ETH) price against the US Dollar has started fresh upward movement above the US$2,650 resistance zone after retesting the strong support zone at US$2,550. The ETH/USD pair gained momentum above the levels at US$2,700 and US$2,720.

The Ethereum price gained pace above the 50% Fibonacci retracement level of the downward swing from the high at US$2,814 level to the low at US$2,548 level. It also broke above a major bearish trend line with resistance near the US$2,750 level on the hourly chart of the ETH/USD pair.

At the time when Bitcoin is still finding it difficult to find direction, Ethereum has moved well above the support level at US$2,700 and the 100 hourly SMA (simple moving average). The Ethereum price has also moved above the 75% Fibonacci retracement level of the downward swing from the high at US$2,814 level to the low at US$2,548 level. Near the US$2,814 high, immediate resistance is located.

The first major resistance is situated near the US$2,850 level. However, US$2,880 is the main hurdle to be crossed for setting the momentum for a larger increase. If the upward momentum continues, the ETH price may test the US$3,000 level.

If ETH fails to move above the US$2,800 and US$2,850 resistance levels, it could trigger a downside correction. The initial support level can be found near the $2,750 level if there is a downward slide in price. If the initial support level is broken below then the main support levels are forming near the US$2,650 level as well as the 100 hourly SMA.

If ETH can’t sustain these major support levels, there could be a larger decline in price. In that case, the next major support level is located near the US$2,550 zone. If ETH/USD pair moves below this level, it could move into a bearish zone. ETH/USD’s Hourly MACD (Moving Average Convergence Divergence) is gaining pace slowly in the bullish zone. Currently, the Hourly RSI is situated above the 50 level.

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