New Delhi (CoinChapter.com) — Ethereum (ETH) February analysis shows extreme upside potential. It is up almost 10% from $2,165 in the last 24 hours. The price is showing many bullish signals, and the next upside target is around $2,850.
Ethereum February Analysis: Future Strength Breakout
In our previous analysis, we discussed how Ethereum could start a new uptrend if it breaks the 50-day simple moving average (blue). Bulls remained active above the $2,125 support zone and could begin a new rally. There was a big move above the $2,400 level and the 50-day simple moving average (blue).
Bitcoin’s recent upward trend helped Ethereum overcome the major hurdle of $2,440. As a result, the price rose steadily above the $2,550 resistance level. Prices crossed the 76.4% Fib retracement level of the bearish wave from the $2,716 swing high to the $2,168 low.
Ethereum’s February analysis shows the price following a key bullish trendline with support at $2,330 on the daily chart. The first major upward resistance can be seen near the last swing high at $2,715.
A clear break above the $2,715 resistance level could push Ethereum higher. The next major resistance level is $2,850. This is consistent with the 1.236 Fib extension level of the bearish wave from the $2,716 swing high to the $2,168 low. If the bulls clear the $2,850 resistance, the price may surge towards the $3,000 resistance in the coming days.
The second ETH ETF application was recently filled by $1.5 trillion asset manager Franklin Templeton. This could push the market higher.
Attractive downtrend in ETH?
Ethereum February analysis suggests there could be a short-term decline if ETH price struggles to break the $2,715 high. Immediate support is near the $2,580 level. The first major support is near $2,440 (recent breakout zone).
Key support is at $2,330, near the 50-day simple moving average (blue) and the trend line. A decline below the $2,330 support could trigger a strong bearish move. If indicated, a decline may occur towards the $2,125 support area. Perhaps more losses could push the price towards the $2,000 level in the coming weeks.
Overall, Ethereum price is showing strength above $2,600 and well above the 50-DSMA. The next major target for ETH bulls could soon be $2,850 or even $3,000.