Ethereum Price Shows Signs of Recovery
“Ethereum price started a fresh increase above the $1,950 resistance. ETH is consolidating and might aim for a move above the $2,070 resistance.”
- Ethereum remained stable and started a fresh increase above the $1,950 level.
- The price is trading above $2,000 and the 100-hourly Simple Moving Average.
- There was a break above a major bearish trend line with resistance near $2,010 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue to move up unless there is a break below the $1,985 support.
Understanding Ethereum’s Recovery
After forming a base above the $1,900 level, Ethereum price started a decent increase. ETH was able to surpass the $1,950 and $1,960 resistance levels, like Bitcoin.
The price even climbed above the $2,000 level and the 100-hourly Simple Moving Average. Besides, there was a break above a major bearish trend line with resistance near $2,010 on the hourly chart of ETH/USD. A high was formed near $2,068 and the price is now consolidating gains.
It traded below the 23.6% Fib retracement level of the recent increase from the $1,905 swing low to the $2,068 high. However, Ethereum is still above $2,000 and the 100-hourly Simple Moving Average.
On the upside, the price is facing resistance near the $2,050 zone. The first key resistance is near the $2,070 level. A clear move above the $2,070 level could spark bullish moves. The next resistance is near $2,120, above which the price could aim for a move toward the $2,200 level. Any more gains could start a wave toward the $2,250 level.
Potential for Ethereum to Pull Back
If Ethereum fails to clear the $2,070 resistance, it could start a fresh decline. Initial support on the downside is near the $2,000 level and the 100-hourly Simple Moving Average.
The next key support is $1,985 or the 50% Fib retracement level of the recent increase from the $1,905 swing low to the $2,068 high. The main support is $1,965. “A downside break below the $1,965 support might trigger more losses. In the stated case, Ether could drop toward the $1,905 support zone in the near term.”
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 – $1,985
Major Resistance Level – $2,070
Source: TradingView.com
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About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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