Ethereum Shows Signs of Recovery
Ethereum has managed to avoid further losses and remains above the crucial support level at $1,520. The recent rise in XRP has sparked a recovery wave in the cryptocurrency market, with ETH also experiencing an increase. It has surpassed resistance levels at $1,550 and $1,565, similar to Bitcoin.
On the hourly chart of ETH/USD, there was a significant break above a bearish trend line near $1,562. Additionally, the pair climbed above the 23.6% Fibonacci retracement level of its previous downward movement from a swing high of $1,669 to a low of $1,542.
Currently, Ethereum is trading above $1,565 and the 100-hourly Simple Moving Average. However, it is facing resistance around the $1,600 level.
Possible Recovery or Further Decline?
If Ethereum fails to overcome the resistance at $1,605, it may experience another decline. The initial support level lies at around $1,575 and the 100-hourly Simple Moving Average.
The next key support is at $1,540, while the main support remains at $1,520. A break below this support could lead to further downward movement. In such a scenario, the price may drop towards the $1,440 level. Additional losses could potentially push Ether towards the $1,350 level in the medium term.
Technical Indicators
The MACD for ETH/USD on the hourly chart indicates gaining momentum in the bullish zone. The RSI for ETH/USD is now above the 50 level.
Major Support Level: $1,575
Major Resistance Level: $1,605
Source: ETHUSD on TradingView.com
Hot Take: Ethereum’s Recovery Potential
If Ethereum manages to break through the resistance at $1,605, it could initiate a recovery wave towards the $1,665 resistance level. Further gains might even push the price towards $1,750. However, failure to overcome the resistance could result in another decline, with potential support levels at $1,575 and $1,540. The main support remains at $1,520, and a break below this level could lead to further losses for Ether.
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