Ethereum (ETH) price started a fresh rally above the $2,000 resistance. The price rose more than 25% and might consolidate before a fresh surge.
Ethereum price outpaced Bitcoin and many other altcoins. In the previous analysis, we discussed the next possible key move in ETH. The price was trading below a key bearish trend line in the daily chart. Finally, the bulls took control and pushed the price in a bullish direction.
The price broke the mentioned bearish trend line and the $1,880 resistance. There was a swift upward move, and ETH broke the $2,000 barrier, outperforming Bitcoin. More importantly, ETH climbed above the 50% Fib retracement level of the downward wave from the $2,860 swing high to the $1,385 low.
Ethereum is now consolidating gains above the $2,150 resistance zone and the 50-day SMA (blue). It is trading up over 25% and the last daily candle suggests a bullish reversal.
If the bulls remain in action, they might attempt another increase to clear the $2,250 resistance. If they succeed, they could push the price toward the next major resistance at $2,380. The next major resistance could be near the $2,500 level and 76.4% Fib retracement level of the downward wave from the $2,860 swing high to the $1,385 low.
A close above the $2,500 level could set the pace for a move toward the $2,860 swing high. Any more gains could send Ether price toward the 1.236 Fib extension level of the downward wave from the $2,860 swing high to the $1,385 low at $3,200.
If Ether fails to break above the $2,250 resistance or $2,300, it could start a downside correction. Immediate support on the downside is near the $2,120 level. The first major support sits near the $2,000 level.
A daily close below the $2,000 level might spark another bearish wave in Ethereum. In the stated case, the price could drop and test the $1,880 support. If there is a clear move below the $1,880 support, ETH price might even decline and retest the 50-day SMA (blue).
Overall, Ethereum price shows bullish signs above $2,120. Having said that, the price must settle above $2,250 and then $2,300 to continue higher. If not, there might be a short-term downside correction toward the $2,000 pivot level.
