TA: Ethereum Primed For Strong Recovery And Only 1 Thing is Holding it Back
Ethereum is attempting a recovery wave from the $2,500 support against the US Dollar. ETH price must clear $2,700 and $2,750 to start a strong recovery wave.
- Ethereum found support near $2,500 and started an upside correction.
- The price is now trading below $2,700 and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance near $2,690 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a strong recovery wave if it clears the $2,700 and $2,700 resistance levels.
Ethereum Price Faces Resistance
Ethereum extended decline below the $2,550 level and tested the $2,500 zone. ETH formed a base above $2,500 and recently started an upside correction.
There was a move above the $2,580 and $2,600 resistance levels. Ether even climbed above the 50% Fib retracement level of the key decline from the $2,750 swing high to $2,503 low. However, it is still trading below $2,700 and the 100 hourly simple moving average.
An immediate resistance on the upside is near the $2,660 level. It is near the 61.8% Fib retracement level of the key decline from the $2,750 swing high to $2,503 low.
The main resistance is now forming near the $2,700 level and the 100 hourly simple moving average. There is also a major bearish trend line forming with resistance near $2,690 on the hourly chart of ETH/USD. A clear move above the $2,700 might start a steady increase.
Source: ETHUSD on TradingView.com
The next major resistance could be $2,750, above which the price could gain bullish momentum. In the stated case, the price could rise towards the $2,880 resistance zone.
Fresh Decline in ETH?
If ethereum fails to start a recovery wave above the $2,700 level, it could start another decline. An initial support on the downside is near the $2,600 level.
The next major support is near the $2,585 level. A downside break below the $2,585 support could push the price towards the $2,500 support level. If there are additional losses, the bears might aim a move towards the $2,420 level in the near term.
Hourly MACD – The MACD for ETH/USD is slowly gaining pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level – $2,585
Major Resistance Level – $2,750