Ethereum Recovery Runs Into Resistance, Why Dips Could be Limited

Ethereum found a strong support near the $ 2,300 zone against the US Dollar. ETH price is rising and might rally if it clears the $ 2,750 resistance zone.

  • Ethereum started a major recovery wave from the $ 2,300 support zone.
  • The price is now trading above $ 2,500 and the 100 hourly simple moving average.
  • There is a key bullish trend line forming with support near $ 2,520 on the hourly chart of ETH / USD (data feed via Kraken).
  • The pair could continue to rise if there is a clear move above the $ 2,750 resistance zone.

Ethereum Price Starts Fresh Increase

Ethereum declined heavily below the $ 2,600 and $ 2,500 support levels. ETH even declined below $ 2,400 and tested the $ 2,300 zone, where the bulls appeared.

A low was formed near $ 2,302 and the price started a strong increase. There was a clear move above the $ 2,500 resistance level. Ether price even climbed above the $ 2,600 level and the 100 hourly simple moving average. It even spiked above the $ 2,700 level, but there was no break above the $ 2,750 resistance.

A high is formed near $ 2,733 and the price is now consolidating gains. It corrected lower below the 23.6% Fib retracement level of the recent increase from the $ 2,302 swing low to $ 2,733 high.

However, it is trading above $ 2,500 and the 100 hourly simple moving average. There is also a key bullish trend line forming with support near $ 2,520 on the hourly chart of ETH / USD. The first major resistance is seen near the $ 2,680 and $ 2,700 levels.

Ethereum Price

Source: ETHUSD on TradingView.com

The main resistance is now forming near the $ 2,750 level. A clear move above the $ 2,750 might start a steady increase. In the stated case, the price might even rise towards the $ 2,920 level.

Fresh Decline in ETH?

If ethereum fails to continue higher above the $ 2,750 resistance, it could start a downside correction. An initial support on the downside is near the $ 2,600 level.

The next major support is near the $ 2,500 level and the trend line. It is near the 50% Fib retracement level of the recent increase from the $ 2,302 swing low to $ 2,733 high. A downside break below the $ 2,500 support could push the price towards the $ 2,400 support level.

Technical Indicators

Hourly MACDThe MACD for ETH / USD is now losing pace in the bullish zone.

Hourly RSIThe RSI for ETH / USD is still above the 50 level.

Major Support Level – $ 2,500

Major Resistance Level – $ 2,750

Source

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