ETH Attempting Recovery Wave After Testing Support Zone
Ethereum is currently attempting a recovery wave after testing the $2,350 support zone. The price is trading below $2,440 as well as the 100-hourly Simple Moving Average. An interesting development to note is the formation of a connecting bearish trend line with resistance at $2,400 on the hourly chart of ETH/USD (data feed via Kraken). For the pair to move higher in the near term, it must clear the $2,440 resistance level.
Price Faces Resistance at $2,400
After trying to initiate a recovery wave above $2,440, Ethereum’s price faced a setback when it failed to surpass the $2,500 resistance zone. A peak was reached at $2,488 before the price declined once again, mimicking Bitcoin’s movements. Consequently, it tested the $2,350 support zone and hit a low at $2,347 before beginning a new recovery wave.
- The price managed to break above the $2,365 and $2,380 resistance levels.
- It exceeded the 23.6% Fib retracement level of the downward wave from the $2,488 high to the $2,347 low.
Potential for Another Decline in ETH
If Ethereum is unable to surpass the $2,440 resistance, it may face another decline in price. The initial support on the downside is expected near $2,365, followed by a significant support level at $2,350. Should the price drop below $2,350, it could head towards $2,310, with further losses potentially leading to the $2,250 support level in the short term, with a critical support level at $2,120.
Technical Indicators for Ethereum
- Hourly MACD – The MACD for ETH/USD is showing a loss of momentum in the bearish zone.
- Hourly RSI – The RSI for ETH/USD is currently above the 50 zone.
Summary
Ethereum is in the process of attempting a recovery wave after testing the $2,350 support zone. The price faces a key resistance at $2,440, with a connecting bearish trend line forming at $2,400 on the hourly chart. Failure to surpass this resistance level may result in another decline, with initial support at $2,365 and major support at $2,350.
Hot Take: Proceed with Caution
As Ethereum’s price fluctuates within the $2,350 to $2,440 range, it’s essential for investors to proceed with caution. Monitoring key resistance levels at $2,440 and support levels at $2,365 and $2,350 will be crucial in determining the cryptocurrency’s next price movement.
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