Ethereum Price Rallies 5% and Outperforms Bitcoin – Is This Strong Bullish Sign?

11 January 2024

Ethereum price climbed higher above the $2,450 resistance. ETH outpaced Bitcoin and seems to be setting up for a larger increase toward $2,880.

Ethereum is gaining pace above the $2,450 resistance level.
The price is trading above $2,500 and the 100-hourly Simple Moving Average.
There was a break above a key rising channel with resistance near $2,440 on the hourly chart of ETH/USD (data feed via Kraken).
The pair is already up over 5% and might rise further above the $2,650 resistance.

Ethereum Price Gains Strength

Ethereum price started a decent increase above the $2,350 resistance. Recently, BTC’s spot ETFs were approved. However, there was no major increase in Bitcoin, but ETH gained bullish momentum.

There was a break above a key rising channel with resistance near $2,440 on the hourly chart of ETH/USD. The pair surged over 5% and even cleared the $2,500 resistance zone. There was a spike above the $2,600 resistance zone. A new multi-week high was formed near $2,642 and the price is now consolidating gains.

There was a minor decline below $2,600, but Ethereum stayed above the 23.6% Fib retracement level of the recent rally from the $2,346 swing low to the $2,642 high. Ethereum is now trading above $2,500 and the 100-hourly Simple Moving Average.

If there is a fresh increase, the price might face resistance near the $2,650 level. The next major resistance is now near $2,720. A clear move above the $2,720 level might send ETH toward $2,780. A close above the $2,780 resistance could push the price further into a bullish zone.

Source: ETHUSD on TradingView.com

The next key resistance is near $2,840. If the bulls push Ethereum above $2,840, there could be a rally toward $2,920. Any more gains might send the price toward the $3,000 zone.

Are Dips Limited in ETH?

If Ethereum fails to clear the $2,650 resistance, it could start a downside correction. Initial support on the downside is near the $2,580 level.

The first key support could be the $2,500 zone or the 50% Fib retracement level of the recent rally from the $2,346 swing low to the $2,642 high. A downside break and a close below $2,500 might send the price further lower. In the stated case, Ether could test the $2,440 support. Any more losses might send the price toward the $2,350 level.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is gaining momentum in the bullish zone.

Hourly RSIThe RSI for ETH/USD is now above the 50 level.

Major Support Level – $2,500

Major Resistance Level – $2,650

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