Ethereum (ETH) Rally Meets Resistance – Here’s Why The Bull Case Still Looks Strong

Ethereum (ETH) started a fresh surge and surpassed the $2,500 resistance. The price is consolidating gains and facing hurdles near $2,740. Ethereum Price Uptrend Bias Remains Upbeat In the previous technical analysis, we saw a fresh surge in Ethereum above the $2,000 resistance zone. It outperformed Bitcoin and gained over 25%. The bulls were able to pump the price above a key bearish trend line with resistance at $1,880 on the daily chart to enter a bullish zone. Besides, ETH climbed above the 76.4% Fib retracement level of the downward wave from the $2,860 swing high to the $1,385 low, opening the doors for more gains. Ethereum is now consolidating gains above the $2,350 resistance zone and the 50-day simple moving average (blue). However, the bulls now face a major hurdle near the $2,740 level. The 50% Fib retracement level of the downward move from the $4,094 swing high to the $1,385 is acting as a hurdle near the $2,740 level. The last two daily candles suggest the bears are active near $2,740 and might attempt a short-term downside correction. Immediate support on the downside is near the $2,420 level. The first major support sits near the $2,350 level. A daily close below the $2,350 level might spark a larger downside correction in Ethereum. In the stated case, the price could drop and test the $2,120 support. If there is a clear move below the $2,120 support, ETH price might even decline and retest the 50-day simple moving average (blue) at $1,880. Fresh Increase After Consolidation In ETH? If the bulls remain in action, they might attempt another increase to clear the $2,740 resistance. If they succeed, they could push the price toward the next major resistance at $3,000. The main hurdle could be near the $3,060 level. A close above the $3,060 level could set the pace for a move toward the $3,450 level and the 76.4% Fib retracement level of the downward move from the $4,094 swing high to the $1,385. Any more losses could send Ether price toward the $1,500 pivot level. Overall, Ethereum price shows bullish signs above $2,350. Having said that, the price must settle above $2,740 and then $3,060 to continue higher. If not, there might be a short-term downside correction toward the $2,120 support level.