Ethereum price is attempting a recovery wave above the $2,240 zone. ETH could gain bullish momentum if it clears the $2,300 resistance zone.
Ethereum started an upside correction above the $2,200 zone.
The price is trading above $2,240 and the 100-hourly Simple Moving Average.
There was a break above a connecting bearish trend line with resistance near $2,265 on the hourly chart of ETH/USD (data feed via Kraken).
The pair might start a steady increase if it clears the $2,300 resistance zone.
Ethereum Price Regains Strength
Ethereum price formed a base and started a recovery wave above the $2,220 resistance zone. ETH cleared the $2,240 resistance zone like Bitcoin to move into a short-term bullish zone.
However, the bears were active near the $2,300 zone. A high was formed at $2,307 before there was a pullback. The price declined below the $2,280 level. It broke the 23.6% Fib retracement level of the recovery wave from the $2,170 swing low to the $2,307 low.
The bulls are now active above the $2,240 support and the 50% Fib retracement level of the recovery wave from the $2,170 swing low to the $2,307 low. Recently, there was a break above a connecting bearish trend line with resistance near $2,265 on the hourly chart of ETH/USD.
Ethereum is now trading above $2,240 and the 100-hourly Simple Moving Average. On the upside, the first major resistance is near the $2,280 level. The next major resistance is near $2,300, above which the price might rise and test the $2,350 resistance.
Source: ETHUSD on TradingView.com
If the bulls push the price above the $2,350 resistance, they could aim for $2,420. A clear move above the $2,420 level might start a decent increase. In the stated case, the price could rise toward the $2,550 level.
Another Decline in ETH?
If Ethereum fails to clear the $2,300 resistance, it could start another decline. Initial support on the downside is near the $2,240 level.
The next key support could be the $2,220 zone. A daily close below the $2,220 support might start another major decline. In the stated case, Ether could test the $2,170 support. Any more losses might send the price toward the $2,120 level.
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 above the 50 level.
Major Support Level – $2,220
Major Resistance Level – $2,300
