Ethereum poised for strong recovery and only one thing is holding it back


Ethereum is trying to bounce back from the USD 2,500 support against the US dollar. The ETH price needs to clear $2,700 and $2,750 to start a strong wave of recovery.

Ethereum found support near USD 2,500 and started an upward correction. The price is now trading below $2,700 and the 100 hourly simple moving average. A major bearish trendline is forming with resistance near $2,690 on the ETH/USD hourly chart (data feed via Kraken). The pair could enter a strong wave of recovery if it clears the USD 2,700 and USD 2,700 resistance levels.

Ethereum Price Faces Resistance

Ethereum extended its decline below the USD 2,550 level and tested the USD 2,500 zone. ETH established a base above USD 2,500 and recently started an upward correction.

There was a move above the $2,580 and $2,600 resistance levels. Ether even climbed above the 50% Fib retracement level from the key drop from the $2,750 swing high to $2,503 low. However, it is still trading below $2,700 and the 100 hourly simple moving average.

An immediate resistance on the upside is near the USD 2,660 level. It is near the 61.8% Fib retracement level of the key drop from the $2,750 swing high to $2,503 low.

The main resistance is now forming near the $2,700 level and the 100 easy moving hourly average. A major bearish trendline is also forming with resistance near $2,690 on the ETH/USD hourly chart. A clear move above USD 2,700 could spark a steady rise.

Source: ETHUSD on TradingView.com

The next major resistance could be at USD 2,750, above which the price could gain bullish momentum. In the mentioned case, the price could rise towards the USD 2,880 resistance zone.

New Drop in ETH?

If ethereum fails to start a wave of recovery above the $2,700 level, it could spark another drop. An initial support on the downside is near the USD 2,600 level.

The next major support is near the USD 2,585 level. A downward breach below the $2,585 support could push the price towards the $2,500 support level. If there are further losses, the bears could aim for the USD 2,420 level in the near term.

Technical indicators

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

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

Major Support Level – $2,585

Major Resistance Level – $2,750

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