Ethereum Recovery Runs Into Resistance, Why Dips Could be Limited

Ethereum has found strong support in the vicinity of the $2300 area against the US Dollar. The price for Ethereum (ETH) is increasing and may rally if the resistance level of $2,750 is cleared.

  • Ethereum experienced a massive recovery from the $2300 support zone.
  • Today, the price traded above $2,500.
  • On the hourly chart for ETH/USD, there is support close to $2,520. This trend line forms as a bullish indicator (data feed via Kraken).
  • A clear break above $2,750 could allow the pair to continue rising.

New Price Increase for Ethereum

Ethereum dropped significantly below the support levels of $2,600 or $2,500. ETH fell below $2,400, and even tested the $2,000.00 zone where bulls were visible.

Near $2,302, a low was reached and the market began to rise. Clear movement was seen above $2,500 resistance. Even higher than the $2,600 level was the Ether Price and the simple 100-hour moving average. The price even soared to the $2700 mark, but it did not break the $2750 resistance.

Near $2,733, a high was formed and now the price consolidates gains. The price corrected below 23.6% Fib level, which was the mark of the increase in the swing from $2,302 low to $2.733 high.

The 100-hourly simple moving mean is at $1,520 and $2,500 respectively. On the hourly chart for ETH/USD, there is a bullish trend line that forms with support at $2,520. Near the $2,680 or $2,700 levels, you will find your first major resistance.

Ethereum Price

Source: TradingView.com, ETHUSD

The resistance lies at the $2,750 level. The price could start rising steadily if it moves above $2,750. If the previous scenario is true, then the price may even climb towards $2,920.

New Decline in the ETH

Ethereum could experience a correction in the event it fails to rise above $2750 resistance. The $2,600 mark is the initial support for the downside.

It is close to the trend line, and $2,500 as the next support. The Fib level is close to the 50% Fib Retracement level for the recent rise from $2,302 swing high to $2,733 low. The price could reach the $2,400 level if it breaks below $2,500.

Technical Indicators

Hourly MACDMACD for Ethereum/USD has been losing speed in bullish zones.

Hourly RSIThe RSI is at 50 for USD/ETH.

Major Support Level – $2,500

Major Resistance Level – $2,750

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