Ethereum Price Surges 12% to $2,880, Faces Correction

Ethereum's price has recently experienced a notable increase, surpassing the $2,750 mark. This upward trend was driven by strong support found near the $2,550 level, which allowed the cryptocurrency to break through resistance levels at $2,650 and $2,720. The bullish momentum continued, pushing the price above $2,800 and even reaching a high of $2,880. However, the price is now correcting these gains, with a move below the 23.6% Fib retracement level of the upward move from the $2,483 swing low to the $2,880 high.

Ethereum's price is currently trading above $2,750 and the 100-hourly Simple Moving Average. However, there was a break below a key bullish trend line forming with support at $2,800 on the hourly chart of ETH/USD. This correction could potentially test the $2,680 support zone. On the upside, the price could face resistance near the $2,800 level, with the next key resistance near the $2,840 level. A clear move above the $2,880 resistance might send the price toward the $2,920 resistance, and an upside break above the $2,920 resistance might call for more gains in the coming sessions, potentially rising toward the $3,000 resistance zone or even $3,120 in the near term.

If Ethereum fails to clear the $2,820 resistance, it could start a fresh decline. Initial support on the downside is near the $2,755 level, with the first major support sitting near the $2,680 zone and the 50% Fib retracement level of the upward move from the $2,483 swing low to the $2,880 high. A clear move below the $2,680 support might push the price toward the $2,620 support, and any more losses might send the price toward the $2,550 support level in the near term. The next key support sits at $2,500.

Technical indicators suggest that the MACD for ETH/USD is losing momentum in the bullish zone, while the RSI for ETH/USD is now below the 50 zone. The major support level is at $2,680, and the major resistance level is at $2,880. The current correction in Ethereum's price could be seen as a healthy dip, allowing for a potential rebound if the $2,680 support holds. However, if the price fails to find support at this level, it could be a warning sign of further declines.