Ethereum price is trying to mount a recovery wave above the $2,240 zone. ETH could gain bullish momentum if it breaks the USD 2,300 resistance zone.
- Ethereum started an upward correction above the $2,200 zone.
- The price is trading above USD 2,240 and the 100-hourly Simple Moving Average.
- There was a break above a connecting bearish trendline with resistance near $2,265 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a steady rise if it crosses the $2,300 resistance zone.
Ethereum price regains strength
Ethereum price formed a base and started a recovery wave above the USD 2,220 resistance zone. ETH has cleared the $2,240 resistance zone like Bitcoin to move into a short-term bullish zone.
However, the bears were active near the $2,300 zone. It reached a high of $2,307 before a pullback. The price fell below the USD 2,280 level. It broke the 23.6% Fib retracement level of the recovery wave from the $2,170 swing low to the $2,307 low.
The bulls are now active above the $2,240 support and the 50% Fib retracement level of the recovery wave from the $2,170 swing low to the $2,307 low. Recently, there was a break above a connecting bearish trendline with resistance around $2,265 on the hourly chart of ETH/USD.
Ethereum is now trading above $2,240 and the 100-hourly Simple Moving Average. On the upside, the first major resistance is around the $2,280 level. The next major resistance is near USD 2,300, above which the price could rise and test the USD 2,350 resistance.
Source: ETHUSD on TradingView.com
If the bulls push the price above the USD 2,350 resistance, they could target USD 2,420. A clear move above the USD 2,420 level could trigger a significant upside. In the mentioned case, the price could rise towards the USD 2,550 level.
Another drop in ETH?
If Ethereum fails to clear the USD 2,300 resistance, it could trigger another decline. The initial downside support is near the $2,240 level.
The next major support could be the $2,220 zone. A daily close below the USD 2,220 support could trigger another big decline. In the said case, Ether could test the USD 2,170 support. Any further losses could send the price towards the USD 2,120 level.
Technical indicators
hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.
RSI per hour – The RSI for ETH/USD is now above the 50 level.
Major support level – $2,220
Major resistance level – $2,300
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