ethereum price is attempting a recovery wave above the $2,240 zone. eth could gain bullish momentum if it breaks the $2,300 resistance zone.
- ethereum started a bullish correction above the $2,200 zone.
- The price is trading above $2,240 and the 100 hourly simple moving average.
- There was a break above a connecting bearish trend line with resistance near $2,265 on the hourly chart of eth/USD (data via Kraken).
- The pair could start a steady rise if it breaks the $2,300 resistance zone.
ethereum price regains strength
ethereum price formed a base and started a recovery wave above the $2220 resistance zone. eth broke through the $2240 resistance zone like bitcoin to move into a short-term bullish zone.
However, the bears were active near the $2,300 zone. A high was formed at $2,307 before a pullback occurred. The price fell below the $2,280 level. It broke the 23.6% Fibonacci retracement level of the recovery wave from the low of $2,170 to the low of $2,307.
The bulls are now active above the $2,240 support and the 50% Fib retracement level of the recovery wave from the low $2,170 to the low $2,307. Recently, there was a break above a connecting bearish trend line with resistance near $2,265 on the hourly chart of eth/USD.
ethereum is now trading above $2,240 and the 100 hourly simple moving average. On the upside, the first major resistance is near the $2,280 level. The next major resistance is near $2,300, above which the price could rise and test the resistance of $2,350.
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Fountain: ETHUSD on TradingView.com
If the bulls push the price above the $2,350 resistance, they could target $2,420. A clear move above the $2,420 level could start a decent rise. In the indicated case, the price could rise towards the $2,550 level.
Another drop in eth?
If ethereum fails to overcome the $2,300 resistance, it could start another decline. Initial support on the downside is near the $2240 level.
The next key support could be the $2220 area. A daily close below the $2220 support could start another major decline. In the given case, Ether could test the support at $2,170. Any further losses could send the price towards the $2,120 level.
Technical Indicators
MACD hourly – 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.
Main Support Level: $2220
Main resistance level: $2,300
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