Ethereum price started a recovery wave above the $2,550 zone. ETH is showing positive signs but faces many hurdles near the $2,880 level.
Ethereum started a decent upward move above the $2,550 zone.
The price is trading below $2,880 and the 100-hourly Simple Moving Average.
There is a short-term declining channel forming with resistance at $2,800 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could start a fresh decline if it stays below the $2,880 level.
Ethereum Price Recovery Faces Hurdles
Ethereum price started a recovery wave after it dropped heavily below $2,500, underperforming Bitcoin. ETH tested the $2,120 zone and recently started a recovery wave.
The price was able to surpass the $2,500 and $2,550 resistance levels. It even climbed above the 50% Fib retracement level of the downward move from the $3,402 swing high to the $2,127 swing low. However, the bears are now active near the $2,900 zone.
The price failed to clear the 61.8% Fib retracement level of the downward move from the $3,402 swing high to the $2,127 swing low. There is also a short-term declining channel forming with resistance at $2,800 on the hourly chart of ETH/USD.
Ethereum price is now trading below $2,880 and the 100-hourly Simple Moving Average. On the upside, the price seems to be facing hurdles near the $2,800 level.
The first major resistance is near the $2,880 level. The main resistance is now forming near $2,920. A clear move above the $2,920 resistance might send the price toward the $3,000 resistance. An upside break above the $3,000 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $3,120 resistance zone or even $3,250 in the near term.
Another Drop In ETH?
If Ethereum fails to clear the $2,880 resistance, it could start another decline. Initial support on the downside is near the $2,640 level. The first major support sits near the $2,550.
A clear move below the $2,550 support might push the price toward the $2,500 support. Any more losses might send the price toward the $2,420 support level in the near term. The next key support sits at $2,350.
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 below the 50 zone.
Major Support Level – $2,550
Major Resistance Level – $2,880
