Breaks Above Bearish Trend Line at $2,540 Level

TLDR

• Ethereum found support at $2,463 and started a fresh increase above $2,500 and $2,520 levels
• ETH broke above a bearish trend line with resistance at $2,540 and now trades above the 100-hour moving average
• Price faces next resistance near $2,600, which aligns with the 50% Fibonacci retracement level
• Technical indicators show bullish momentum with MACD gaining strength and RSI above 50
• Key support levels remain at $2,520 and $2,500, with major resistance at $2,600 and $2,650

Ethereum price has shown renewed strength after establishing support near $2,460 following a correction from recent highs. The cryptocurrency found its footing at $2,463 and began a fresh upward move.

The recovery gained momentum as ETH cleared the $2,500 resistance level. This move came after Bitcoin traded to a new all-time high, providing positive sentiment across the crypto market.

ETH continued its ascent by breaking above the $2,520 level. The price now trades above the 100-hourly Simple Moving Average, a technical development that often indicates strengthening momentum.

A key technical milestone was achieved when Ethereum broke above a connecting bearish trend line. This trend line had resistance at the $2,540 level on the hourly chart.

The current price action has taken ETH above the 23.6% Fibonacci retracement level. This level is calculated from the downward move between the $2,729 swing high and the $2,463 low.

Resistance Levels Come Into Focus

The next key resistance zone sits near the $2,600 level. This price point aligns with the 50% Fibonacci retracement level of the recent decline.

Above $2,600, ETH would encounter resistance near $2,630. This level represents another technical hurdle that could slow upward progress.

The first major resistance sits near the $2,650 level. A clear break above this zone could open the path toward the previous high at $2,720.

If momentum continues, a break above $2,720 could target the $2,800 resistance zone. Further gains might even reach $2,850 in the near term.

Technical Indicators Show Positive Momentum

The hourly MACD indicator is gaining momentum in the bullish zone. This suggests that buying pressure is increasing relative to selling pressure.

The RSI indicator has moved above the 50 level. This development indicates that momentum has shifted from bearish to neutral-bullish territory.

These technical indicators support the price action showing renewed buying interest. The combination suggests that the recent correction may have run its course.

Support Levels Remain Key

If ETH fails to clear the $2,600 resistance, a pullback could occur. Initial support on the downside sits near the $2,520 level.

The first major support zone is located near $2,500. This level previously acted as resistance and could now provide buying interest on any decline.

A break below $2,500 would target the $2,460 support level where the recent low was established. Further weakness could push the price toward $2,420.

The next key support below current levels sits at $2,350. This level would represent a deeper correction from current price levels.

Current price action shows ETH trading above both the $2,520 level and the 100-hour moving average, with technical indicators showing positive momentum as bulls prepare for a potential test of $2,600 resistance.