Ethereum started a recovery wave above the $2,820 level against the US Dollar. ETH must clear the $2,920 resistance to start a steady upward move.
Ethereum started a short-term upside correction above the $2,780 and $2,800 levels.
The price is now trading above $2,820 and the 100 hourly simple moving average.
There is a key rising channel forming with support near $2,820 on the hourly chart of ETH/USD (data feed via Kraken).
The pair must clear the $2,885 and $2,920 resistance levels to continue higher.
Ethereum Price Faces Hurdles
Ethereum formed a base above the $2,750 level and started a recovery wave. ETH was able to climb above the $2,780 and $2,800 levels.
There was a clear move above the 50% Fib retracement level of the main drop from the $2,980 swing high to $2,720 low. There is also a key rising channel forming with support near $2,820 on the hourly chart of ETH/USD.
Ether price is now trading above $2,820 and the 100 hourly simple moving average. However, the bears are active above the $2,880 level. On the upside, an initial resistance is seen near the $2,880 level. It is near the 61.8% Fib retracement level of the main drop from the $2,980 swing high to $2,720 low.
The next major resistance is near the $2,920 level. A clear move above the $2,920 resistance might start a steady upward move. In the stated case, ether price might rise towards the $2,980 high. Any more gains may perhaps send the price towards the $3,050 resistance in the near term.
Another Decline in ETH?
If ethereum fails to gain pace above the $2,920 resistance, it could start another decline. An initial support on the downside is near the $2,820 zone.
The channel support is also near the $2,820 zone. If there is a downside break below the $2,820 support, the price could gain bearish momentum. The next major support is near the $2,760, below which the price could revisit the $2,720 zone. Any more losses may perhaps open the doors for a larger decline towards the $2,550 level or even $2,500.
Technical Indicators:
Hourly MACD – The MACD for ETH/USD is now losing pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is above the 50 level.
Major Support Level – $2,820
Major Resistance Level – $2,920
