Ethereum wants to ride the wave of recovery from the US Dollar’s $2,500 support. For strong recovery to begin, ETH must be priced above $2700 and $2750.
- Ethereum gained support close to $2,500 and initiated an upside correction.
- Current trading is below $2,700. The 100 hourly simple moving Average has fallen to $1,120.
- A major bearish trendline is emerging with resistance close to $2,690 in the hourly chart of Ethereum/USD (datafeed via Kraken).
- If the pair clears resistances of $2,700 or $2,700, it could begin a powerful recovery wave.
Ethereum Price Faces Resistance
Ethereum continued to decline below $2,550 and reached the $2,500 level. ETH recently began an upside correction and formed a $2,500 base.
A move was seen above the resistance levels at $2,580/$2,600. Ether also surpassed the 50% Fib level of the pivotal decline from $2,750 swing high, to $2,503 bottom. It is trading at below $2700, the 100-hourly simple moving average, however.
The $2,660 level is a strong resistance. This is close to the 61.8% Fib Retracement level for the pivotal decline from $2,750 swing high, $2,503 low.
Resistance is currently forming at the close of the $2700 level and 100-hourly simple moving average. On the hourly chart for ETH/USD, there is a significant bearish trend line with resistance at $2,690. An increase in the price could be initiated by a clear break above $2,700.
Source: TradingView.com ETHUSD
Next major resistance is $2,750. Above which, the price may gain bullish momentum. If the previous scenario is true, then the price might rise towards $2,880.
New Decline in the ETH
Ethereum could experience another drop if it fails to recover above the $2700 mark. Initial support is at the $2,600 mark.
Near the $2,585 support level is the next major support. The price could reach the $2,500 level if it breaks below the $2585 support. In the short term, bears could aim to move toward the $2420 level, if they suffer additional losses.
Technical indicators
Hourly MACD – Slowly, the MACD for USD/ETH is gaining momentum in bullish territory.
Hourly RSI – The RSI of ETH/USD has risen to above 50.
Major Support Level – $2,585
Major Resistance Level – $2,750
