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Ethereum price is trying to reach a recovery wave from the $2,400 zone. ETH needs to clear $2,550 to continue higher in the near term.
- Ethereum started a decent recovery wave above the USD 2,450 level.
- The price is trading above $2,500 and the 100-hourly Simple Moving Average.
- There was a break above a connecting bearish trendline with resistance at $2,485 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair needs to stay above $2,500 to rise again in the near term.
Ethereum price begins recovery
Ethereum price extended losses below the USD 2,500 level. ETH even tested the $2,400 support before the bulls appeared. The price started a recovery wave above the USD 2,450 level, just like Bitcoin.
There was a move above the USD 2,480 and USD 2,500 resistance levels. The price climbed above the 50% Fib retracement level of the downwave from the $2,595 swing high to the $2,400 low. Additionally, there was a break above a connecting bearish trendline with resistance at $2,485 on the hourly chart of ETH/USD.
The Ethereum price is now trading above $2,500 and the 100-hourly Simple Moving Average. On the upside, the price seems to be facing hurdles around the USD 2,550 level. It is close to the 76.4% Fib retracement level of the downward wave from the $2,595 swing high to the $2,400 low.
The first major resistance is around the $2,600 level. A close above the USD 2,600 level could send Ether towards the USD 2,650 resistance. The next major resistance is near USD 2,720. An upside break above the USD 2,720 resistance could send the price higher towards the USD 2,800 resistance zone in the near term.
Another drop in ETH?
If Ethereum fails to clear the USD 2,550 resistance, it could trigger another decline. The initial downside support is near $2,495. The first major support is near the $2,450 zone.
A clear move below the USD 2,450 support could push the price towards USD 2,400 where the bulls could emerge. Any further losses could send the price towards the USD 2,320 support level in the near term. The next major support is at USD 2,250.
Technical indicators
hourly MACD – The MACD for ETH/USD is gaining strength in the bullish zone.
RSI per hour – The RSI for ETH/USD is now above the 50 zone.
Major support level – $2,450
Major resistance level – $2,550
