Ethereum Starts a Decent Increase
The price of Ethereum has begun to increase above the $2,250 resistance zone. It has also cleared the $2,280 resistance level and is currently trading above $2,280 and the 100-hourly Simple Moving Average.
Bullish Trend Line Breakout
On the hourly chart of ETH/USD, there was a breakout above a connecting bearish trend line with resistance near $2,260. This indicates a positive trend for Ethereum.
Resistance Zone Ahead
However, the pair might encounter difficulty in clearing the $2,325 resistance zone and may experience a correction lower from that point.
Ethereum Price Revisits Resistance
The price of Ethereum has started to rise above the $2,250 resistance zone. Similar to Bitcoin, it has cleared the $2,280 resistance level and has entered a steady recovery wave.
The bulls have successfully pushed the price above the $2,300 resistance level. Additionally, a bearish trend line with resistance near $2,260 has been broken on the hourly chart of ETH/USD. As a result, a new weekly high has been formed at around $2,327 and the price is currently consolidating its gains.
Furthermore, Ethereum is now trading above the 23.6% Fib retracement level of its upward move from the $2,234 swing low to the $2,327 high. It is also trading above both $2,280 and the 100-hourly Simple Moving Average.
Source: ETHUSD on TradingView.com
Resistance Levels to Watch
If Ethereum continues its upward trend, the first major resistance it will face is near the $2,330 level. The next significant resistance level is around $2,350, and if the price manages to surpass this level, it might test the $2,420 resistance. Further bullish momentum could push the price towards $2,450 and potentially even higher to the $2,550 level.
Another Bearish Wave in ETH?
However, if Ethereum fails to clear the $2,330 resistance level, it may experience another decline. The initial support on the downside is expected near the $2,300 level.
The next key support level could be at $2,280 or the 50% Fib retracement level of its upward move from the $2,234 swing low to the $2,327 high. A daily close below the $2,280 support might trigger a major decline and push Ether to test the $2,200 support. Further losses could lead to a price drop towards the $2,120 level.
Technical Indicators
The MACD for ETH/USD on the hourly chart indicates a loss of momentum in the bullish zone. However, the RSI for ETH/USD is currently above the 50 level.
Major Support Level – $2,280
Major Resistance Level – $2,330
Hot Take: Ethereum Faces Resistance While Attempting Recovery
Ethereum has experienced a decent increase and managed to clear several key resistance levels. However, it is now facing a critical resistance zone that may cause a correction lower. If Ethereum can successfully break through this resistance zone, it has the potential to continue its recovery and potentially reach higher price levels. On the other hand, if it fails to overcome this resistance, it may experience another decline and test key support levels. Traders should closely monitor Ethereum’s price movements and keep an eye on the major resistance and support levels mentioned above.
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