Ethereum started a recovery wave above the $2,820 level against the US Dollar. ETH must get rid of the $2,920 resistance to start a steady upward move.
- Ethereum started a short-term bullish correction above the $2,780 and $2,800 levels.
- The price is now trading above $2,820 and the 100 hourly simple moving average.
- There is a major bullish channel forming with support near $2,820 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair must surpass the $2,885 and $2,920 resistance levels to continue rising.
Ethereum price faces hurdles
Ethereum formed a base above the $2,750 level and started to recovery wave. ETH managed to climb above the $2,780 and $2,800 levels.
There was a clear move above the 50% Fib retracement level of the main decline from the $2,980 swing high to $2,720. There is also a major ascending channel forming with the support near $2,820 on the hourly chart of ETH/USD.
Ether price is now trading above $2,820 and 100-hour simple moving average. With that said, the bears are active above the $2,880 level. On the upside, we see initial resistance near the $2,880 level. It is near the 61.8% Fib retracement level of the major decline from the $2,980 swing high to $2,720.
Source: ETHUSD on TradingView.com
The next major resistance is near the $2,920 level. A clear move above the resistance at $2,920 may start a steady upward move. In the aforementioned case, the price of ether could rise towards $2,980. Any further gains could send the price towards the $3,050 resistance level in the near term.
Another drop in ETH?
If Ethereum fails to rise above the $2,920 resistance, it may start dropping again. There is initial support on the downside near the $2,820 region.
Channel support is also near the $2,820 region. If there is a downside break below the $2,820 support, the price may gain bearish momentum. The next major support is near $2,760, which could revisit the $2,720 region. Any further losses could open the door for a bigger decline towards the $2550 or even $2500 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 – $2,820
Key Resistance Level – $2,920