Ethereum Claims $2K Back, Why Benefits May Be Limited Above $2.2K


Ethereum found support near $1,700 against the US dollar. ETH started a recovery wave and climbed above the key $2,000 resistance zone.

Ethereum started a significant recovery wave above the $1,900 and $2,000 levels. The price is still trading below USD 2,150 and the 100 hourly simple moving average. There was a break above a major bearish trendline with resistance near USD 2,000 on the ETH/USD hourly chart (data feed via Kraken). The pair could accelerate if it clears USD 2,150 and USD 2,200 in the near term.

Ethereum price breaks $2K

Ethereum extended losses below the key USD 2,000 support zone. ETH even broke the USD 1,800 level before the bulls took a position near the USD 1,700 level.

A low was formed near $1,700 and the price started a fresh rise. There was a marked move above the USD 1,800 and USD 1,900 resistance levels. In addition, there was a break above a key bearish trendline with resistance near USD 2,000 on the ETH/USD hourly chart.

Ether price is now trading just above the 50% Fib retracement level of the key decline from the $2,450 swing high to $1,700 low. However, it is still trading below USD 2,150 and the 100 hourly simple moving average.

The first major resistance is near the USD 2,150 level. The main resistance is now forming near the USD 2,200 level. It is close to the 61.8% Fib retracement level of the main drop from the $2,450 swing high to $1,700 low. A close above the USD 2200 level could open the doors for some decent gains.

Source: ETHUSD on TradingView.com

In the mentioned case, ether price could rise towards the USD 2,400 resistance. An intermediate resistance may be near the $2,350 level.

New Drop in ETH?

If ethereum fails to recover above the USD 2,200 resistance, it could start another decline. An initial support on the downside is near the $2,000 zone.

The next major support is near the $1,870 level. A close below the $1,870 level could restart the downtrend. In the mentioned case, the price could plunge towards the $1,700 level. The next major support could come near the USD 1,620 and USD 1,600 levels in the near term.

Technical indicators

Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bullish zone.

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

Major Support Level – $1,870

Major Resistance Level – $2,200

Leave a Reply

Your email address will not be published.