Ethereum began a wave of recovery above the $28,820 resistance against the US dollar. To begin a steady uptrend, ETH needs to clear the $2920 resistance.
- Ethereum began a temporary upside correction over the $2,780 & $2,800 levels.
- The current price trades above $28,820, and the simple 100-hour moving average.
- The hourly chart for ETH/USD shows a rising channel with support close to $2,820. (Data feed via Kraken).
- For the pair to move higher, they must pass both $2,885 & $2,920 resistance.
Ethereum Price Faces Hurdles
Ethereum established a base at the $2,750 mark and began a recovery wave. ETH managed to surpass the $2,780 level and $2,800 levels.
The Fib retracement level at the main fall from $2.980 swing high to $2.720 low was clearly above 50%. On the hourly chart for ETH/USD, there is a rising channel with support at $2,820.
The Ether price has risen to $2,820. This is in addition to the 100-hourly simple moving average. The bears remain active at the $2,880 mark. Surprisingly, a resistance level is found near the $2880 level. It’s near the Fib retracement of the main decline from the $2.980 swing high level to $2.720 low at 61.8%.
Source: TradingView.com, ETHUSD
Next is the $2920 resistance. An upward trend could be initiated by a clear break above the $2920 level. If the price rises above the $2920 resistance, it could lead to a move towards the $2980 level. The price could rise towards $3,050 in the next few months if there are more gains.
Is there another decline in the ETH price?
Ethereum could experience a further decline if its pace falls below the resistance of $2,920. The $2,820 area is the initial support for the downside.
Channel support also lies near the $2820 area. The price may gain bearish momentum if it breaks below the $2,820 resistance. Near the $2760 support level, which is below which, the price might revert back to the $2720 zone, will be the next significant support. If there are more losses, it could lead to a bigger decline toward the $2550 or $2,500 level.
Technical Indicators
Minutely MACD – In the bullish zone, the MACD is losing momentum for USD/ETH.
Hourly RSI – The RSI is higher than 50 for USD/ETH.
Major Support Level – $2,820
Major Resistance Level – $2,920