Ethereum price is consolidating above the $2,550 resistance. ETH could gain bullish momentum if it breaks through the $2,650 resistance zone.

• Ethereum is struggling to gain momentum to break above $2,650.
• The price remains above $2,600 and the 100-hour plain moving average.
• On the hourly chart of the ETH/USD pair (data via Kraken), a short-term contracting triangle is forming with resistance at $2,640.
• The pair could benefit from upside momentum if it closes above USD 2,650.

Ethereum price is starting to consolidate

Ethereum price remained stable above the $2,550 level. ETH formed a base and began a steady upward movement above the $2,580 level, similar to Bitcoin. There was a move towards the $2,665 level.

A high was formed at $2662 and price is consolidating. There was a minor pullback below the $2600 level. Price fell below the 50% Fibonacci retracement level of the upside move from the $2536 swing low to the $2662 high.

Ethereum price is now trading above $2,620 and the 100-hour plain moving average. If it continues to rally, the price could face obstacles near the $2,650 level. A short-term contracting triangle is also forming on the ETH/USD hourly chart with resistance at $2,640.

The first major resistance is near the $2,720 level. A close above the $2,720 level could take Ether towards the $2,750 resistance. The next key resistance is near the $2,880 level. A break of the $2,880 resistance upwards could take the price higher towards the $3,000 resistance zone in the near future.

Another ETH drop?

If Ethereum fails to break through the $2,650 resistance, it could begin another decline. Initial support on the downside is near the $2,600 area. The first major support is near the $2,580 area. The 61.8% Fibonacci retracement level of the upside move from the $2,536 swing low to the $2,662 peak is also near the $2,580 level.

A clear move below the $2,580 support could push the price towards the $2,550 area, where bulls could step in. Any further losses could send the price towards the $2,500 support level in the near future. The next key support is at $2,440.

Technical indicators

Hourly MACD – The MACD for the ETH/USD pair is gaining momentum in the growth zone.

Hourly RSI – The RSI indicator for the ETH/USD pair has already exceeded the level of 50.

Major Support Level – $2,580

Main resistance level – $2650