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Ethereum price is trying to reach a recovery wave above $2,420. ETH needs to overcome the USD 2,500 resistance to continue higher in the near term.
- Ethereum is trying to stage a recovery wave from the $2,320 zone.
- The price is trading below $2,480 and the 100-hourly Simple Moving Average.
- There was a break above a key bearish trendline with resistance at $2,430 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair needs to overcome the USD 2,500 resistance to continue higher in the near term.
Ethereum price faces resistance
Ethereum price extended losses below the USD 2,400 level. ETH was even trading below the USD 2,350 support before the bulls appeared. A low was formed at $2,308 and the price is now trying to make a recovery wave just like Bitcoin.
There was a move above the USD 2,350 and USD 2,400 resistance levels. The price climbed above the 50% Fib retracement level of the downwave from the $2,565 swing high to the $2,308 low. There was also a break above a key bearish trendline with resistance at $2,430 on the hourly chart of ETH/USD.
However, the price faces hurdles near USD 2,480. Ethereum price is now trading below $2,480 and the 100-hourly Simple Moving Average. On the upside, the price seems to be facing hurdles around the USD 2,465 level. It is close to the 61.8% Fib retracement level of the downward wave from the $2,565 swing high to the $2,308 low.
The first major resistance is around the $2,500 level. A close above the USD 2,500 level could send Ether towards the USD 2,550 resistance. The next major resistance is near USD 2,620. An upside break above the USD 2,620 resistance could send the price higher towards the USD 2,780 resistance zone in the near term.
Another drop in ETH?
If Ethereum fails to clear the USD 2,465 resistance, it could trigger another decline. The initial downside support is near USD 2,435. The first major support is near the $2,400 zone.
A clear move below the USD 2,400 support could push the price towards USD 2,340. Any further losses could send the price towards the USD 2,300 support level in the near term. The next major support is at USD 2,250.
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 zone.
Major support level – $2,400
Major resistance level – $2,500
