After establishing a support base above $1,850, Ethereum has begun a new rally above the $1,880 level and outperformed Bitcoin. The price made a notable move above the $1,950 resistance level, reaching a multi-day high of $1,975 before entering a collapse phase.
After dipping slightly below $1,965, the price found support around the 23.6% Fibonacci retracement level of the recent rally from the lows of $1,889 to the highs of $1,974. Ethereum is currently trading above $1,920 and the 100-hour simple moving average. On the ETH/USD hourly chart, support near $1,945 forms a bullish trendline.
Near-term resistance is near $1,975, followed by heavy resistance at $2,000. A decisive close above the $2,000 level could trigger a new surge and the next resistance level could be near $2,050.
Further upside momentum could push the price towards the resistance levels of $2,120 and $2,200.
However, if Ethereum fails to break out of the $1,975 or $2,000 resistance levels, a downside correction is likely. We expect initial support at $1,950 and near the trendline area.
The next important support level is near $1,930, coinciding with the 50% Fibonacci retracement level and the 100 hour simple moving average. A further drop could push the price towards $1,900 and test the $1,880 support level.
