Ethereum Is Showing Positive Signs, But This Resistance Is Key
Ethereum started a wave of recovery above the USD 2,820 level against the US dollar. ETH needs to clear the $2,920 resistance to start a steady upward move.
Ethereum started a short-term upward correction above the $2,780 and $2,800 levels. The price is now trading above $2,820 and the 100 hourly simple moving average. A major bullish channel is forming with support near $2,820 on the ETH/USD hourly chart (data feed via Kraken). The pair needs to clear the $2,885 and $2,920 resistance levels to continue higher.
Ethereum Price Faces Hurdles
Ethereum established a base above the $2,750 level and started a wave of recovery. ETH was able to climb above the $2,780 and $2,800 levels.
There was a clear move above the 50% Fib retracement level of the main fall from the $2,980 swing high to $2,720 low. An important bullish channel is also forming with support near $2,820 on the ETH/USD hourly chart.
Ether price is now trading above $2,820 and the 100 hourly simple moving average. However, the bears are active above the USD 2,880 level. On the upside, initial resistance is seen near the USD 2,880 level. It is near the 61.8% Fib retracement level of the key drop from the $2,980 swing high to $2,720 low.
Source: ETHUSD on TradingView.com
The next major resistance is near the $2,920 level. A clear move above the $2,920 resistance could spark a steady upward move. In the mentioned case, the ether price could climb as high as $2,980. If there are further gains, the price may move towards the $3,050 resistance in the near term.
Another drop in ETH?
If ethereum fails to gain momentum above the $2,920 resistance, it could spark another drop. An initial support on the downside is near the $2,820 zone.
The channel support is also near the $2,820 zone. If there is a downside breach below the USD 2,820 support, the price could gain bearish momentum. The next major support is near the $2,760, below which the price could revisit the $2,720 zone. More losses may well open the doors for a bigger drop towards the USD 2,550 or even USD 2,500.
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 – $2,820
Major Resistance Level – $2,920