Ethereum price is attempting to recover above the $2,240 area. ETH could gain bullish momentum if it breaks through the $2,300 resistance zone.
- Ethereum began an upward correction above the $2,200 area.
- The price is trading above $2,240 and the 100-hour simple moving average.
- On the hourly chart of ETH/USD (data feed via Kraken), a breakout occurred above a bearish trend line that connects with resistance near $2,265.
- Breaking out of the $2,300 resistance area, the pair could begin a steady rise.
Ethereum price gains strength again
Ethereum price formed a base and began a recovery above the $2,220 resistance zone. ETH cleared the Bitcoin-like $2,240 resistance area and moved into near-term bullish territory.
However, bears remained active near $2,300. A high was reached at $2,307 before a downward trend took place. The price fell below the $2,280 level. The recovery wave broke through the 23.6% Fib retracement level 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. There was recently a breakout of a bearish trend line connecting resistance near $2,265 on the hourly chart of ETH/USD.
Ethereum is currently trading above $2,240 and the 100-hour simple moving average. On the positive side, the first major resistance is near the $2,280 level. The next major resistance is near $2,300, above which the price could move higher and test the $2,350 resistance.
Source: ETHUSD on TradingView.com
If the bulls push the price above the $2,350 resistance, they could target $2,420. A clear break above the $2,420 level could initiate a significant rally. If specified, the price could rise to the $2,550 level.
Another drop in ETH?
If Ethereum fails to clear the $2,300 resistance, it could begin another downtrend. Initial support for the downside is near the $2,240 level.
The next major support could be the $2,220 zone. A daily close below the $2,220 support could mark the beginning of another major decline. If indicated, Ether could test the $2,170 support. Any more losses could push the price down to the $2,120 level.
technical indicators
Hourly MACD – ETH/USD MACD is losing momentum in the bullish zone.
RSI per hour – The RSI for ETH/USD is now above the 50 level.
Key Support Level – $2,220
Key Resistance Level – $2,300
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