Ethereum fell towards the $880 support level against the US Dollar. ETH is recovering and looking for a bullish breakout above the $1150 resistance area.
- Ethereum started a good recovery wave from the $880 support area.
- The price is now trading above $1000 and the 100 hourly simple moving average.
- There was a break above the major downtrend line with resistance near $980 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a decent increase if it clears the key resistance area at $1,150.
Ethereum price faces hurdles
Ethereum remains in descending zone Below the $1050 level. ETH extended its losses and traded below the $1,000 support level. There was a sharp drop below the $950 level.
The price tested the $880 support level before the bulls appeared. A bottom was formed near $880 and the price started a decent rally. There was a move above the $950 and $960 resistance levels. Ether cleared the 50% Fib retracement level of the downside move from the $1,256 swing high to the $880 low.
Besides, there was a break above the major downtrend line with resistance near $980 on the hourly chart of ETH/USD. The pair even rose above the $1,100 level.
However, the bears appeared near the $1,150 resistance level. Ether failed to surpass the 76.4% Fib retracement level of the downside move from the $1,256 swing high to the $880 low. The price is now consolidating near the $1,080 level and 100-hour simple moving average.
Source: ETHUSD on TradingView.com
There is an immediate resistance near the $1,100 level. The next major resistance is near the $1,150 area. A clear move above the $1150 resistance area could start a proper upward move. The next major resistance is near the $1,255 level. Any further gains could start a move towards the $1320 resistance.
A new drop in ETH?
If Ethereum fails to rise above the $1150 resistance, it may start a new decline. There is initial support on the downside near the $1040 region.
The next major support is near the $1,000 area. A clear move and a break below the $1,000 area could start a significant decline. In the mentioned case, the price could revisit the $880 support area in the near term.
MACD per hour – ETH/USD’s MACD is gaining momentum in bearish territory.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Key Support Level – $1,000
Key Resistance Level – $1,150