Ethereum price started a recovery wave from the $3,050 zone. ETH is up over 10% and is now struggling to clear the $3,550 resistance zone.
- Ethereum started a decent recovery wave from the $3,050 zone.
- The price is trading above $3,350 and the 100-hourly Simple Moving Average.
- There was a break above a major bearish trend line with resistance at $3,400 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue to rise if it settles above the $3,550 resistance zone.
Ethereum Price Starts Recovery
Ethereum price extended its decline below the $3,350 and $3,200 levels, like Bitcoin. ETH even declined below the $3,150 support level before the bulls appeared. It tested the $3,050 zone.
A low was formed at $3,059 and the price is moving higher. There was a strong recovery wave above the $3,350 resistance. The price cleared the 50% Fib retracement level of the downward wave from the $3,675 swing high to the $3,059 low.
There was also a break above a major bearish trend line with resistance at $3,400 on the hourly chart of ETH/USD. Ethereum price is now trading above $3,400 and the 100-hourly Simple Moving Average.
On the upside, immediate resistance is near the $3,520 level or the 76.4% Fib retracement level of the downward wave from the $3,675 swing high to the $3,059 low. The first major resistance is near the $3,550 level. The next key resistance sits at $3,675, above which the price might gain bullish momentum.
Source: ETHUSD on TradingView.com
In the stated case, Ether could rally toward the $3,820 level. If there is a move above the $3,820 resistance, Ethereum could even rise toward the $4,000 resistance. Any more gains might call for a test of $4,080.
Another Decline In ETH?
If Ethereum fails to clear the $3,550 resistance, it could start another decline. Initial support on the downside is near the $3,380 level.
The first major support is near the $3,320 zone. The next key support could be the $3,220 zone. A clear move below the $3,220 support might send the price toward $3,150. Any more losses might send the price toward the $3,050 level.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level – $3,380
Major Resistance Level – $3,550
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
Comments (No)