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Ethereum price is attempting a recovery wave above $2,420. ETH needs to break through the $2,500 resistance level to continue its uptrend in the short term.
- Ethereum is attempting a recovery in the $2,320 range.
- The price is trading below $2,480 and the 100 hourly simple moving average.
- A major downtrend line has broken, forming resistance at $2,430 on the ETH/USD hourly chart based on data provided by Kraken.
- The pair needs to break the $2,500 resistance level to continue its uptrend in the short term.
Ethereum price faces resistance
Ethereum price extended its downtrend below the $2,400 level. ETH was trading below the $2,350 support level before the bullish turn. A low was formed at $2,308 and the price is now attempting a Bitcoin-like recovery wave.
It moved above the $2,350 and $2,400 resistance levels. The price rose above the 50% Fibonacci correction level of the downtrend from the $2,565 swing high to the $2,308 low. It also broke above the major downtrend line with resistance at $2,430 on the hourly chart of ETH/USD.
However, the price has hit a snag near $2,480. The Ethereum price is currently trading below $2,480 and the 100-hourly simple moving average. From an uptrend perspective, the price seems to have hit a snag near the $2,465 level. It is close to the 61.8% Fibonacci retracement level of the downtrend from the $2,565 swing high to the $2,308 low.
The first major resistance is near the $2,500 level. A close above the $2,500 level could see Ether move towards the $2,550 resistance. The next major resistance is near $2,620. A break above the $2,620 resistance could see the price move towards the $2,780 resistance area in the short term.
Will ETH fall again?
If Ethereum fails to break the $2,465 resistance, it could start another downtrend. The initial support for the downtrend is near $2,435. The first major support is near the $2,400 area.
A clear move below the $2,400 support could see the price rise to $2,340. Further losses could see the price rise to the $2,300 support in the short term. The next major support is $2,250.
Technical indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is currently above the 50 zone.
Key Support Level – $2,400
Key Resistance Level – $2,500