Ethereum Recovers But ETH Must Clear This Key Resistance
Ethereum started a recovery wave above the $2,800 level against the US Dollar. must clear the $2,850 resistance to continue higher in the near term.
- Ethereum started a decent recovery wave above the $2,780 and $2,800 levels.
- The price is consolidating above $2,820 and the 100 hourly simple moving average.
- There was a break above a major bearish trend line with resistance near $2,750 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair must clear the $2,850 and $2,860 resistance levels to continue higher.
Ethereum Price Faces Resistance
Ethereum followed a bearish path below the $2,850 pivot level. ETH even traded below the $2,800 support level and the 100 hourly simple moving average.
It traded as low as $2,718 before the bulls appeared. Ether price started an upside correction and climbed above the $2,750 level. The price was able to surpass the $2,800 resistance. There was a clear move above the 23.6% Fib retracement level of the key decline from the $2,980 swing high to $2,718 low.
Besides, there was a break above a major bearish trend line with resistance near $2,750 on the hourly chart of ETH/USD. The pair is now consolidating above $2,820 and the 100 hourly simple moving average.
On the upside, an initial resistance is seen near the $2,850 level. It is near the 50% Fib retracement level of the key decline from the $2,980 swing high to $2,718 low. The next major resistance is near the $2,880 level. A clear move above the $2,880 resistance might start another increase.
Source: ETHUSD on TradingView.com
The next major resistance on the upside might be $2,920. Any more gains may perhaps send the price towards the $3,000 resistance in the near term.
Fresh Decline in ETH?
If ethereum fails to gain pace above the $2,850 resistance, it could start another decline. An initial support on the downside is near the $2,800 zone.
The first major support is near the $2,750 level. If there is a downside break below the $2,750 support, the price could revisit the key $2,720 support zone. Any more losses may perhaps open the doors for a larger decline towards the $2,650 level or even $2,620.
Hourly MACD – The MACD for ETH/USD is now losing pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is above the 50 level.
Major Support Level – $2,800
Major Resistance Level – $2,850