Ethereum started a recovery wave above the $ 2,800 level against the US Dollar. must clear the $ 2,850 resistance to continue higher in the near term.
- Ethereum started a decent 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 major bearish trend line with resistance near $ 2,750 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair must clear the $ 2,850 and $ 2,860 resistance levels to continue higher.
Ethereum Price Faces Resistance
Ethereum followed a bearish path below the $ 2,850 pivot level. ETH even traded below the $ 2,800 support level and the 100 hourly simple moving average.
It traded as low as $ 2,718 before the bulls appeared. Ether price started an upside correction and climbed above the $ 2,750 level. The price was able to surpass the $ 2,800 resistance. There was a clear move above the 23.6% Fib retracement level of the key decline from the $ 2,980 swing high to $ 2,718 low.
Besides, there was a break above a major bearish trend line with resistance near $ 2,750 on the hourly chart of ETH/USD. The pair is now consolidating above $ 2,820 and the 100 hourly simple moving average.
On the upside, an initial resistance is seen near the $ 2,850 level. It is near the 50% Fib retracement level of the key decline from the $ 2,980 swing high to $ 2,718 low. The next major resistance is near the $ 2,880 level. A clear move above the $ 2,880 resistance might start another increase.
Source: ETHUSD on TradingView.com
The next major resistance on the upside might be $ 2,920. Any more gains may perhaps send the price towards the $ 3,000 resistance in the near term.
Fresh Decline in ETH?
If ethereum fails to gain pace above the $ 2,850 resistance, it could start another decline. An initial support on the downside is near the $ 2,800 zone.
The first major support is near the $ 2,750 level. If there is a downside break below the $ 2,750 support, the price could revisit the key $ 2,720 support zone. Any more losses may perhaps open the doors for a larger decline towards the $ 2,650 level or even $ 2,620.
Technical Indicators
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
