Ethereum is currently showing a consolidation of gains above $2,400, while Bitcoin continues to surge. The question arises whether ETH will follow BTC later and experience a similar upward movement.
The current price action for Ethereum indicates that it is consolidating below the $2,460 resistance zone. However, it has managed to hold above the $2,400 level and the 100-hourly Simple Moving Average. A major bullish trend line is forming with support at $2,435 on the hourly chart of ETH/USD.
For ETH to initiate a significant increase, it needs to surpass the $2,460 resistance level. In that case, it could potentially rally towards the $2,480 and $2,500 levels. The next major resistance lies around $2,550, which, if breached, could lead to a test of the $2,620 resistance.
On the other hand, if Ethereum fails to clear the $2,460 resistance, it might experience a downside correction. The initial support sits near $2,435, followed by the $2,400 zone and the 50% Fib retracement level of the recent wave. Further losses could drive the price towards $2,375 and ultimately the $2,350 level.
Based on technical indicators, the MACD for ETH/USD is showing a loss of momentum in the bullish zone, while the RSI is above the 50 level.
In conclusion, while Ethereum is consolidating its gains, it is crucial for it to break above the $2,460 resistance level to potentially follow Bitcoin’s upward movement. However, a failure to do so could result in a downside correction. Traders and investors are advised to conduct their own research and exercise caution when making investment decisions.