Ethereum Recovers, But ETH Needs To Clear This Important Resistance
Ethereum started a recovery wave above the $2,800 level against the US dollar. needs to clear the USD 2,850 resistance to continue higher in the near term.
Ethereum started a significant 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 key bearish trendline with resistance near USD 2,750 on the ETH/USD hourly chart (data feed via Kraken). The pair needs to clear the USD 2,850 and USD 2,860 resistance levels to continue higher.
Ethereum Price Faces Resistance
Ethereum followed a bearish path below the USD 2,850 pivot level. ETH even traded below the $2,800 support level and the 100 simple hourly moving average.
It was trading as low as $2,718 before the bulls appeared. Ether price started an upward correction and climbed above the USD 2,750 level. The price was able to surpass the USD 2,800 resistance. There was a marked move above the 23.6% Fib retracement level from the key drop from the $2,980 swing high to $2,718 low.
In addition, there was a break above a major bearish trendline with resistance near USD 2,750 on the ETH/USD hourly chart. The pair is now consolidating above the USD 2,820 and the 100 hourly simple moving average.
On the upside, an initial resistance is seen near the USD 2,850 level. It is near the 50% Fib retracement level of the key drop from the $2,980 swing high to $2,718 low. The next major resistance is near the USD 2,880 level. A clear move above the USD 2,880 resistance could spark another rise.
Source: ETHUSD on TradingView.com
The next major resistance on the upside could be $2,920. If there are further gains, the price may move towards the $3,000 resistance in the near term.
New Drop in ETH?
If ethereum fails to gain momentum above the USD 2,850 resistance, it could spark another drop. An initial support on the downside is near the $2,800 zone.
The first major support is near the USD 2,750 level. If there is a downside break below the $2,750 support, the price could revisit the key $2,720 support zone. More losses may well open the doors for a bigger drop towards the USD 2,650 or even USD 2,620 level.
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