Ethereum price started a recovery wave above the $1,780 level against the US Dollar. ETH needs to clear $1,820 to start a decent increase in the near term.
- Ethereum is currently consolidating below the $1,820 resistance zone.
- The price is trading below $1,820 and the 100-hour Simple Moving Average.
- A major bearish trendline is forming with resistance near $1,818 on the ETH/USD hourly chart (data feed via Kraken).
- The pair could start a decent increase if it breaks above the USD 1,820 resistance.
Ethereum Price Recovery Faces Hurdle
Ethereum price extended its decline below the USD 1,800 zone. ETH even fell below the USD 1,780 level before the bulls appeared near USD 1,760, similar to Bitcoin.
A low was formed near USD 1,761 and the price is currently attempting a recovery wave. It is trading above the 23.6% Fib retracement level of the main drop from the $1,872 swing high to the $1,761 low. Ether is now trading below $1,820 and the 100-hour Simple Moving Average.
A major bearish trendline is also forming with resistance near $1,818 on the ETH/USD hourly chart. The trendline is close to the 50% Fib retracement level of the main drop from the $1,872 swing high to the $1,761 low.
Immediate resistance is near the $1,818 zone and the trendline. The first major resistance is near the USD 1,820 level. A close above the USD 1,820 resistance could send Ether towards USD 1,845.
Source: ETHUSD at TradingView.com
The next resistance is near USD 1,875, above which Ethereum could rise towards USD 1,920. More gains above the $1,920 resistance zone could push the price towards the $2,000 resistance.
New Decline in ETH?
If Ethereum fails to clear the $1,820 resistance, it could spark another bearish wave. The first support on the downside is near the $1,785 level.
The next key support is near the $1,760 zone or the recent swing low. If a close breaks below the $1,760 support, the price could start another major drop. In the said case, the price may decline towards the $1,700 support zone. Any more losses might send the price towards the $1,660 level in the coming days.
Technical indicators
MACD per hour – The MACD for ETH/USD is losing momentum in the bullish zone.
RSI per hour – The RSI for ETH/USD is above the 50 level.
Major Support Level – $1,785
Major resistance level – $1,820
