Ethereum Nears Breakout Zone, Why ETH Might Start Recovery
Ethereum started an upside correction from $2,200 against the US Dollar. ETH might gain bullish momentum if it clears the $2,400 resistance zone.
- Ethereum started an upside 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 key 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 decline below the $2,400 level. ETH even traded below the $2,300 before the bulls appeared near the $2,200 support zone.
The price started a recovery wave above the $2,300 and $2,320 levels. The bulls pumped the price above $2,400, but they failed near $2,450. Recently, there was a fresh decline to $2,250. A low is 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 the 100 hourly simple moving average. On the upside, an initial resistance is seen near the $2,385 level. There is also a key 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 doors for a decent increase. In the stated case, ether price might rise towards the $2,550 resistance.
More Losses in ETH?
If ethereum fails to recover above the $2,455 resistance, it could continue to move down. An initial support on the downside is near the $2,300 zone.
The next major support is near the $2,260 level. The main breakdown support now sits near the $2,225 level. If there is a downside break below $2,225 and the $2,200 zone, ether price extend losses. In the stated case, it might even visit the $2,000 support.
Hourly MACD – The MACD for ETH/USD is slowly moving in the bullish zone.
Hourly RSI – The RSI for ETH/USD is just above the 50 level.
Major Support Level – $2,260
Major Resistance Level – $2,455