Ethereum started a recovery wave above the $2800 level against the US Dollar. It should remove the $2,850 resistance to continue higher in the near term.
- Ethereum started a good recovery wave above the $2,780 and $2,800 levels.
- The price is consolidating above $2,820 and the 100 hourly simple moving average.
- There was a break above the major downtrend line with resistance near $2,750 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair must breach the $2,850 and $2,860 resistance levels to continue rising.
Ethereum price faces resistance
Ethereum follows a downward path Below the pivotal level of $2,850. ETH is even trading below the $2,800 support level and the 100 hourly simple moving average.
It was trading as low as $2,718 before the bulls showed up. Ether price started an upward correction and rose above the $2,750 level. The price was able to break above the $2800 resistance. There was a clear move above the 23.6% Fib retracement level of the key decline from the $2,980 swing high to $2,718.
Besides, there was a break above the major downtrend line with resistance near $2,750 on the hourly chart of ETH/USD. The pair is now consolidating above $2,820 and 100-hour simple moving average.
On the upside, we see an initial resistance near the $2,850 level. It is close to the 50% Fib retracement level of the major decline from the $2,980 swing high to $2,718 low. The next major resistance is near the $2,880 level. A clear move above the $2,880 resistance may start to rise again.
Source: ETHUSD on TradingView.com
The next major resistance on the upside might be $2,920. Any further gains could send the price towards the $3000 resistance level in the near term.
A new drop in ETH?
If Ethereum fails to rise above the $2,850 resistance, it may start declining again. There is initial support on the downside near the $2800 region.
The first major support is near the $2,750 level. If there is a downside break below the $2,750 support, the price could revisit the key $2,720 support area. Any further losses could open the door to a bigger decline towards the $2650 level or even the $2,620 level.
MACD per hour – ETH/USD’s MACD is losing momentum in bullish territory.
Hourly RSI – The RSI for ETH/USD is above the 50 level.
Key Support Level – $2800
Major Resistance Level – $2,850