A Strengthening Case for Upside
Ethereum retested the $2,750-2,780 support zone against the US Dollar. ETH price is recovering and it must clear $3,000 to start a steady increase in the near term.
- Ethereum started an upside correction after testing the $2,780 zone.
- The price is still trading below $3,000 and the 100 hourly simple moving average.
- There is a major bearish trend line forming with resistance near $2,950 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a steady increase if there is a close above $2,950 and $3,000.
Ethereum Price Faces Hurdle
Ethereum failed to clear $3,150 and started a fresh decline, similar to bitcoin. ETH broke the $3,000 and $2,950 support levels to enter a bearish zone.
The price even settled below $2,950 and the 100 hourly simple moving average. There was a break below $2,800, but the bulls remained active above $2,750. A low is formed near $2,789 and the price is now correcting lower.
Ether climbed above the $2,850 level. There was a break above the 23.6% Fib retracement level of the recent decline from the $3,165 swing high to $2,789 low. On the upside, an immediate resistance is near the $2,950 level and the 100 hourly simple moving average.
The first major resistance is near the $2,980 level. There is also a major bearish trend line forming with resistance near $2,950 on the hourly chart of ETH/USD. The trend line is close to the 50% Fib retracement level of the recent decline from the $3,165 swing high to $2,789 low.
Source: ETHUSD on TradingView.com
A break above $2,950 and $3,000 could start a decent increase. The next key resistance is near $3,150, where the bears may possibly take a stand in the near term.
Fresh Decline in ETH?
If ethereum fails to continue higher above the $2,950 and $3,000 resistance levels, it could start a fresh decline. An initial support on the downside is near the $2,825 level.
The main support is still near the $2,780 and $2,750 levels. If ether fails to stay above $2,750, there is a risk of a larger decline. In the stated case, the price might slide towards the $2,650 level.
Hourly MACD – The MACD for ETH/USD is slowly gaining pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level – $2,750
Major Resistance Level – $3,000