Ethereum Eyes Breakout: Will $2,040 Resistance Open Doors for New Gains?

Ethereum (ETH) has been teasing a potential breakout after recovering above $1,920 and clearing initial hurdles at $1,950. However, the cryptocurrency is now consolidating, facing strong resistance near the $2,020 level.

Ethereum's Current Price Action

The second-largest cryptocurrency by market cap formed a solid base above $1,820 before starting a recovery wave, mirroring Bitcoin’s recent price movement. The bulls successfully pushed the price past the $1,880 and $1,920 resistance levels, gaining short-term momentum.

Ethereum’s price is now trading just below $1,950 and the 100-hourly Simple Moving Average (SMA), while forming a rising channel with support at $1,980 on the ETH/USD hourly chart (data feed via Kraken).

Key Resistance Levels to Watch

The $2,020 resistance zone has proven to be a significant barrier for Ethereum, coinciding with the 50% Fibonacci retracement level from the recent downward wave between $2,068 and $1,936.

If ETH can clear the $2,020 resistance, the next major hurdle lies at $2,040, representing the 76.4% Fibonacci retracement level. Breaking through this level could pave the way for gains toward $2,120, with further upside potential targeting $2,150 and even $2,250 in the near term.

What Happens if Ethereum Fails?

On the downside, immediate support lies near the $1,980 level, with stronger support at $1,950. If Ethereum fails to hold these levels, the price could retrace toward the $1,880 support zone. A further decline might push ETH down to $1,850 or even $1,800 if bearish pressure intensifies.

Technical Indicators

• Hourly MACD: The MACD for ETH/USD is gaining momentum in the bullish zone, signaling the potential for further gains.
• Hourly RSI: The RSI is hovering above 50, suggesting a balanced momentum with a slight bullish bias.

Ethereum's Next Steps: Breakout or Consolidation?

Ethereum traders and investors should closely monitor the $2,020 and $2,040 resistance levels. A clear breakout above these zones could trigger a bullish rally, while failure to do so might lead to another leg down toward $1,880 or lower.

The current consolidation phase indicates that ETH is at a critical juncture, and the next few sessions will be crucial in determining its short-term direction.

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