Ethereum price started a recovery wave above the $2,500 zone. ETH is up nearly 10% and now faces a major resistance near $2,920.
- Ethereum started a decent upward move above the $2,500 support zone.
- The price is trading below $2,900 and the 100-hourly Simple Moving Average.
- There is a key bearish trend line forming with resistance at $2,920 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a fresh decline if it stays below the $2,920 level.
Ethereum Price Attempts Recovery
Ethereum price started a major decline below the $2,800 level, underperforming Bitcoin. ETH declined below the $2,650 and $2,500 levels to enter a bearish zone.
There was a clear move below the $2,200 level. The price declined over 25% and tested the $2,120 zone. A low was formed at $2,127 and the price recently started a fresh upward move. There was an increase above the $2,500 level.
The price surpassed the 50% Fib retracement level of the downward move from the $3,403 wing high to the $2,127 swing low. However, the bears are now active near the $2,900 zone. There is also a key bearish trend line forming with resistance at $2,920 on the hourly chart of ETH/USD.
Ethereum price is now trading below $2,900 and the 100-hourly Simple Moving Average. On the upside, the price seems to be facing hurdles near the $2,900 level. The first major resistance is near the $2,920 level and the trend line or the 61.8% Fib retracement level of the downward move from the $3,403 wing high to the $2,127 swing low.
The main resistance is now forming near $3,000. A clear move above the $3,000 resistance might send the price toward the $3,120 resistance. An upside break above the $3,120 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $3,250 resistance zone or even $3,320 in the near term.
Another Drop In ETH?
If Ethereum fails to clear the $2,900 resistance, it could start another decline. Initial support on the downside is near the $2,765 level. The first major support sits near the $2,650.
A clear move below the $2,650 support might push the price toward the $2,500 support. Any more losses might send the price toward the $2,420 support level in the near term. The next key support sits at $2,350.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 zone.
Major Support Level – $2,765
Major Resistance Level – $2,920
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