Ethereum aims for a major upside break, which could halt the recovery


Ethereum is recovering losses of more than $2,400 against the US dollar. The ETH price is rising, but needs to clear $2,550 for a steady rise.

Ethereum is slowly moving towards the USD 2,500 and USD 2,550 resistance levels. The price is trading below USD 2,500 and the 100 hourly simple moving average. There was movement above a key bearish trendline with resistance near USD 2,500 on the ETH/USD hourly chart (data feed via Kraken). The pair could see steady gains if there is significant movement above the USD 2,550 resistance zone.

Ethereum Price Faces Resistance

Ethereum found support near $2,150 and started a significant recovery wave. ETH was able to climb above the $2,250 and $2,350 resistance levels.

There was a marked move above the 23.6% Fib retracement level from the recent drop from the $2,547 swing high to $2,160 low. In addition, there was a move above a key bearish trendline with resistance near USD 2,500 on the ETH/USD hourly chart.

The pair is still trading below USD 2,500 and the 100 hourly simple moving average. An immediate resistance on the upside is near the USD 2,500 level.

The first major resistance is near the USD 2,550 level. A clear move above the USD 2,550 resistance could spark a steady rise. In the aforementioned case, the pair could rise towards the USD 2,720 level. It is near the 50% Fib retracement level from the recent drop from the $2,547 swing high to $2,160 low.

Source: ETHUSD on TradingView.com

If there is a break above the USD 2,720 zone resistance, the price could gain bullish momentum. The next major resistance is near the USD 2,850 level. More gains could send the ether price to $3,000.

Fresh dive into ETH?

If ethereum fails to start a wave of recovery above the $2,500 level, it could start another decline. An initial support on the downside is near the USD 2,420 level.

The first major support is now forming near the USD 2,320 level. A downward breach below the USD 2,320 level could lead to a sharp decline. The next major support for the bulls may be near the $2,200 zone. More losses could push the price towards the USD 2,150 level.

Technical indicators

Hourly MACD – The MACD for ETH/USD is losing pace in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now above the 50 level.

Major Support Level – $2,320

Major Resistance Level – $2,550

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