Ethereum price is attempting a recovery wave above $2,420. ETH must clear the $2,500 resistance to continue higher in the near term.
- Ethereum is attempting a recovery wave from the $2,320 zone.
- The price is trading below $2,480 and the 100-hourly Simple Moving Average.
- There was a break above a key bearish trend line with resistance at $2,430 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair must clear the $2,500 resistance to continue higher in the near term.
Ethereum Price Faces Resistance
Ethereum price extended losses below the $2,400 level. ETH even traded below the $2,350 support before the bulls appeared. A low was formed at $2,308 and the price is now attempting a recovery wave like Bitcoin.
There was a move above the $2,350 and $2,400 resistance levels. The price climbed above the 50% Fib retracement level of the downward wave from the $2,565 swing high to the $2,308 low. There was also a break above a key bearish trend line with resistance at $2,430 on the hourly chart of ETH/USD.
However, the price is facing hurdles near $2,480. Ethereum price is now trading below $2,480 and the 100-hourly Simple Moving Average. On the upside, the price seems to be facing hurdles near the $2,465 level. It is close to the 61.8% Fib retracement level of the downward wave from the $2,565 swing high to the $2,308 low.
The first major resistance is near the $2,500 level. A close above the $2,500 level might send Ether toward the $2,550 resistance. The next key resistance is near $2,620. An upside break above the $2,620 resistance might send the price higher toward the $2,780 resistance zone in the near term.
Another Decline In ETH?
If Ethereum fails to clear the $2,465 resistance, it could start another decline. Initial support on the downside is near $2,435. The first major support sits near the $2,400 zone.
A clear move below the $2,400 support might push the price toward $2,340. Any more losses might send the price toward the $2,300 support level in the near term. The next key support sits at $2,250.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 zone.
Major Support Level – $2,400
Major Resistance Level – $2,500
