Ethereum Surges 7.4% to $2,550 on Bullish Momentum

Ethereum's price has recently surged past the $2,550 mark, marking a significant increase from its previous position at the $2,375 zone. This upward trend has been driven by bullish momentum, with the price gaining traction above the $2,500 resistance level. The cryptocurrency has managed to clear the 76.4% Fib retracement level of the downward move from the $2,523 swing high to the $2,372 low, and even spiked above the $2,600 level, forming a high at $2,614 before consolidating its gains.

Currently, Ethereum is trading above $2,550 and the 100-hourly Simple Moving Average. A short-term contracting triangle is forming with support at $2,560 on the hourly chart of ETH/USD. This technical pattern suggests that the price could start a fresh increase if it remains stable above the $2,550 zone in the near term. On the upside, the price could face resistance near the $2,615 level, which is near the 1.618 Fib extension level of the downward move from the $2,523 swing high to the $2,372 low. The next key resistance is near the $2,650 level, with the first major resistance near the $2,665 level. A clear move above the $2,665 resistance might send the price toward the $2,720 resistance.

However, if Ethereum fails to clear the $2,615 resistance, it could start a fresh decline. Initial support on the downside is near the $2,560 level, with the first major support sitting near the $2,550 zone. A clear move below the $2,550 support might push the price toward the $2,520 support. Any more losses might send the price toward the $2,450 support level in the near term, with the next key support sitting at $2,350.

Technical indicators suggest that the MACD for ETH/USD is losing momentum in the bullish zone, while the RSI for ETH/USD is now above the 50 zone. The major support level is at $2,550, while the major resistance level is at $2,615. These indicators suggest that Ethereum's price is currently in a consolidation phase, with the potential for further gains if it can clear the $2,615 resistance level. However, if the price fails to hold above the $2,550 support level, it could face a quick reversal and decline toward the $2,450 or even $2,350 support levels.