Ethereum started a nice increase above the $2,920 resistance level against the US Dollar. ETH needs to get rid of $2,980 and $3,000 to continue higher in the near term.
- Ethereum started a steady recovery wave above the $2900 resistance.
- The price is now trading above $2900 and the 100 hourly simple moving average.
- There is a major bullish trend line forming with support near $2,900 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair must breach the $2,980 and $3,000 resistance levels to continue rising.
Ethereum price starts recovery
Ethereum formed a base above the $2,760 level and started steadily increasing. ETH soared over The $2,850 and $2,880 resistance levels To move into positive territory.
Ether rose above $2900 and 100-hour simple moving average. Finally, there was a rally above the $2,950 level and a high trading price of $2,969. It is now consolidating its gains below the $2,980 resistance area.
It is trading above the 23.6% Fib retracement level of the recent wave of the swing low of $2,756 to the high of $2,969. There is also a major bullish trend line forming with support near $2900 on the hourly chart of ETH/USD. On the upside, we see initial resistance near the $2,970 level.
Source: ETHUSD on TradingView.com
The first major resistance is near the $2,980 level. The main breakout area is now near the $3000 level. A close above the $3,000 level could set the tone for an even bigger rally. In the mentioned case, the price of Ether may rise towards the $3,150 resistance.
Support dips in ETH?
If Ethereum fails to rise above the $2,980 resistance, it may start a downside correction. There is initial support on the downside near the $2,920 region. The next major support is near the $2900 level and the trend line.
If there is a downside break below the trendline support, the ether price may test the 50% Fib retracement level of the latest wave of the swing low at $2,756 to the high of $2,969. Any further losses may require a test of the $2,850 support and the 100 hourly simple moving average.
Technical Indicators
MACD per hour – The MACD for ETH/USD is still showing positive signs in the bullish zone.
Hourly RSI – The RSI for ETH/USD is correcting from the 80 level.
Key Support Level – $2900
Key Resistance Level – $2,980