Ethereum price started a recovery wave from the $2,250 zone. ETH is now consolidating and may fail to extend the gains above the $2,360 resistance.
- Ethereum started a recovery wave from the $2,250 zone.
- The price is trading below $2340 and the 100 hourly simple moving average.
- There was a break above a bearish trend line with resistance at $2,300 on the hourly chart of ETH/USD (data via Kraken).
- The pair could start a new decline if it remains below the $2,360 area.
Ethereum price faces resistance
Ethereum price tested the $2,250 support zone before bulls such as Bitcoin emerged. ETH price formed a base and began a recovery wave above the $2,300 resistance.
There was a break above a downtrend line with resistance at $2,300 on the hourly chart of ETH/USD. The pair surpassed the 23.6% Fibonacci retracement level of the downward move from the high of $2.465 to the low of $2.253. The price even shot above $2,335 but faced resistance.
Ethereum price is now trading below $2,350 and the 100 hourly simple moving average. If the bulls remain in action above $2,290, the price could attempt another rise. Immediate resistance is seen near the $2,330 level.
The first key resistance is near the $2,360 level and the 50% Fibonacci retracement level of the downward move from the high of $2,465 to the low of $2,253. The next major resistance is near the $2,385 level. A clear move above the $2,385 resistance could send the price towards the $2,420 resistance. A bullish break above the $2,420 region could require more gains in the coming days. In the indicated case, Ether could rise towards the resistance zone of $2,465 or even $2,500 in the short term.
Another drop in ETH?
If Ethereum fails to overcome the $2,360 resistance, it could start a new decline. The initial support on the downside is near the $2290 level. The first major support lies near the $2250 area.
A clear move below the $2,250 support could push the price towards the $2,200 support. Any further losses could send the price towards the $2,150 region. The main support could be $2,120.
Technical Indicators
MACD hourly – The MACD for ETH/USD is gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now below the 50 zone.
Main Support Level: $2250
Main resistance level: $2,360
