Ethereum price is attempting to recover beyond the $2,200 area. ETH could begin a significant rally if it settles above the $2,240 resistance.
- Ethereum began an upward correction in the $2,165 region.
- The price is trading below $2,250 and the 100-hour simple moving average.
- The hourly chart of ETH/USD (data feed via Kraken) shows a near-term bearish trendline forming with resistance near $2,225.
- A break above the $2,240 resistance could initiate a significant rally.
Ethereum price eye recovery
Ethereum price has formed a support base above the $2,165 level. ETH appears to be consolidating losses near the $2,200 level and may be targeting a Bitcoin-like recovery.
There has been a slight upward correction above the $2,200 level, but bears remain active near the $2,240 resistance zone. Additionally, on the hourly chart of ETH/USD, there is a short-term bearish trendline forming with resistance near $2,225.
Ethereum is currently trading below $2,250 and the 100-hour simple moving average. On the positive side, the first major resistance is near the $2,240 level. This is close to the 23.6% Fib retracement level of the key decline from the $2,480 swing high to the $2,165 low.
The next major resistance is near $2,280 or the 100-hourly simple moving average, a break above which could push the price higher to test the 50% Fib retracement level of the major decline from the $2,480 swing high to the $2,165 low. If the bulls push the price above the $2,320 resistance, they could target $2,360.
Source: ETHUSD on TradingView.com
A clear break above the $2,360 level could initiate a significant rally. If specified, the price could rise to the $2,420 level. If more gains occur, the price may head towards the $2,500 area.
Another failure for ETH?
If Ethereum fails to clear the $2,240 resistance, it could begin another downtrend. Initial support for the downside is near the $2,200 level.
The next major support could be the $2,165 area. A daily close below the $2,165 support could begin another major decline. If indicated, Ether could test the $2,080 support. Any more losses could push the price down to the $2,000 level.
technical indicators
Hourly MACD – ETH/USD MACD is losing momentum in bearish territory.
RSI per hour – The RSI for ETH/USD is now above the 50 level.
Key Support Level – $2,165
Key Resistance Level – $2,240
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