ethereum price started a recovery wave from the $2,820 zone. eth is rising and now faces a major hurdle near the 100 hourly simple moving average.
- ethereum found support at $2,820 and began a recovery wave.
- The price is trading below $3,050 and the 100 hourly simple moving average.
- There was a break above a key bearish trend line with resistance at $3,000 on the hourly chart of eth/USD (data via Kraken).
- The pair could start a new decline if it fails to overcome the $3,050 resistance.
ethereum price faces key hurdle
ethereum price extended losses below the $3,000 level, like bitcoin. eth even tested the $2,820 support zone. A low was formed at $2,813 and the price started a recovery wave.
There was a decent move above the $2,880 and $2,950 resistance levels. The price broke above the 23.6% Fibonacci retracement level of the downside move from the high of $3,355 to the low of $2,813. Additionally, there was a break above a key downtrend line with resistance of $3,000 on the eth/USD hourly chart.
However, the bears are active near the 100 hourly simple moving average. ethereum is now trading below $3,030 and the 100 hourly simple moving average. The immediate resistance is near the $3,030 level. The first major resistance is near the $3,050 level.
The next key resistance lies at $3,085 or the 50% retracement level of the downward move from the high of $3,355 to the low of $2,813, above which the price could gain traction and rise towards the $3,150 level .
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Fountain: ETHUSD on TradingView.com
If the bulls remain in action and push the price above $3,150, there could be a trend towards the $3,250 resistance. Any further gains could send Ether towards the $3,350 resistance zone.
Another drop in eth?
If ethereum fails to overcome the $3,050 resistance, it could start another decline. Initial support on the downside is near the $2,940 level. The first major support is near the $2,880 area.
The main support is near the $2,820 level. A clear move below the $2,820 support could push the price towards $2,740. Any further losses could send the price towards the $2,650 level in the near term.
Technical Indicators
MACD hourly – The MACD for eth/USD is losing momentum in the bearish zone.
Hourly RSI – The RSI for eth/USD is now above the 50 level.
Main Support Level: $2,940
Main Resistance Level: $3,050
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