Ethereum Nears Breakout Zone, Why ETH Might Start Recovery

The upside correction started for Ethereum against the US dollar at $2,200. If it crosses the $2,000.400 resistance zone, ETH may gain bullish momentum.

  • Ethereum began an upward correction over $2,300 and 2,320
  • The daily simple moving average and price are still below $2,400.
  • A key bearish trend line is emerging with resistance close to $2,385 in the hourly chart of Ethereum/USD (datafeed via Kraken).
  • A close of $2,400 to $2,450 could signal a gradual recovery.

Ethereum price facing breakout resistance

Ethereum fell below $2,400. ETH traded as low as $2,300 just before bulls appeared close to the $2,000.00 support level.

It began a rebound wave higher than the $2,300 or $2,320 levels. Although the bulls attempted to pump it above $2,400 they were unsuccessful near $2,450. Recent declines to $2,250 were seen. The price has been rising since the low of $2,263

A break was seen above $2,320. Ether is currently trading at 50% Fib level, which indicates a recent fall from the $2.455 swing high, to the $2.263 low.

The 100-hourly simple moving mean and $2,400 are still below it. An initial resistance can be found near the $23,385 level. On the hourly chart for ETH/USD, there is a bearish trend line that forms with resistance at $2,385

Ethereum Price

Source: TradingView.com, ETHUSD

Near the $2,400 mark is the first significant resistance. At the $2,455 mark is where you will find the main resistance. If the price closes above $2,455, it could allow for an increase. The above scenario could lead to a rise in the price of ether towards $2,550.

Are There More Losses in Ethereum?

It could move lower if it fails to overcome the resistance of $2,455 Support for the downside lies near the $2300 mark.

Near the $2,260 support level is the next major support. At the moment, there is a main support at $2225. Price extend losses can occur if there’s a downside move below $2225 and within the $2200 zone. The price could reach $2,000 in this case.

Technical indicators

Hourly MACDSlowly, the MACD of ETH/USD moves in the bullish area.

Hourly RSIThe RSI is close to the 50 level for USD/ETH.

Major Support Level – $2,260

Major Resistance Level – $2,455

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