Ethereum started an upward correction from $2,200 against the US Dollar. ETH may gain bullish momentum if it clears the $2,400 resistance area.
- Ethereum started an upward correction above $2,300 and $2,320.
- The price is still trading below $2,400 and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance near $2,385 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a steady recovery wave if there is a close above $2,400 and $2,450.
Ethereum price faces breakout resistance
Ethereum extended its retreat Below the $2,400 level. ETH traded even below $2,300 before the bulls appeared near the $2,200 support area.
The price started a recovery wave above the $2,300 and $2,320 levels. The bulls pumped the price above $2,400, but failed near $2,450. Recently, there was a new low to $2,250. The bottom formed near $2,263 and the price is now rising.
There was a break above the $2,320 level. Ether price is trading above the 50% Fib retracement level of the recent decline from the $2,455 swing high to $2,263 low.
However, it is still trading below $2,400 and 100-hour simple moving average. On the upside, we see initial resistance near the $2,385 level. There is also a major bearish trend line forming with resistance near $2,385 on the hourly chart of ETH/USD.
Source: ETHUSD on TradingView.com
The first major resistance is near the $2,400 level. The main resistance is now forming near the $2,455 level. A close above the $2,455 level could open the door for a decent increase. In the mentioned case, the price of Ether may rise towards the $2.550 resistance.
More losses in ETH?
If Ethereum fails to recover above the $2,455 resistance, it may continue to decline. There is initial support on the downside near the $2,300 region.
The next major support is near the $2,260 level. The major breakdown support is now near the $2,225 level. If there is a downside break below $2,225 and the $2,200 area, the Ether price increases losses. In the mentioned case, he may visit the $2000 support.
MACD per hour – The MACD for ETH/USD is slowly moving into bullish territory.
Hourly RSI – The RSI for ETH/USD is just above the 50 level.
Key Support Level – $2,260
Key Resistance Level – $2,455