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TA: Ethereum Recovery Runs Into Resistance, Why Dips Could be Limited

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Ethereum found a strong support near the $2,300 zone against the US Dollar. ETH price is rising and might rally if it clears the $2,750 resistance zone.

  • Ethereum started a major recovery wave from the $2,300 support zone.
  • The price is now trading above $2,500 and the 100 hourly simple moving average.
  • There is a key bullish trend line forming with support near $2,520 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could continue to rise if there is a clear move above the $2,750 resistance zone.

Ethereum Price Starts Fresh Increase

Ethereum declined heavily below the $2,600 and $2,500 support levels. ETH even declined below $2,400 and tested the $2,300 zone, where the bulls appeared.

A low was formed near $2,302 and the price started a strong increase. There was a clear move above the $2,500 resistance level. Ether price even climbed above the $2,600 level and the 100 hourly simple moving average. It even spiked above the $2,700 level, but there was no break above the $2,750 resistance.

A high is formed near $2,733 and the price is now consolidating gains. It corrected lower below the 23.6% Fib retracement level of the recent increase from the $2,302 swing low to $2,733 high.

However, it is trading above $2,500 and the 100 hourly simple moving average. There is also a key bullish trend line forming with support near $2,520 on the hourly chart of ETH/USD. The first major resistance is seen near the $2,680 and $2,700 levels.

Ethereum Price

Source: ETHUSD on TradingView.com

The main resistance is now forming near the $2,750 level. A clear move above the $2,750 might start a steady increase. In the stated case, the price might even rise towards the $2,920 level.

Fresh Decline in ETH?

If ethereum fails to continue higher above the $2,750 resistance, it could start a downside correction. An initial support on the downside is near the $2,600 level.

The next major support is near the $2,500 level and the trend line. It is near the 50% Fib retracement level of the recent increase from the $2,302 swing low to $2,733 high. A downside break below the $2,500 support could push the price towards the $2,400 support level.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is now losing pace in the bullish zone.

Hourly RSIThe RSI for ETH/USD is still above the 50 level.

Major Support Level – $2,500

Major Resistance Level – $2,750

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