Ethereum dived towards the $880 support against the US Dollar. ETH is recovering and eyeing an upside break above the $1,150 resistance zone.
- Ethereum started a decent recovery wave from the $880 support zone.
- The price is now trading above $1,000 and the 100 hourly simple moving average.
- There was a break above a major bearish trend line with resistance near $980 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a decent increase if it clears the key $1,150 resistance zone.
Ethereum Price Faces Hurdles
Ethereum remained in a bearish zone below the $1,050 level. ETH extended losses and traded below the $1,000 support. There was a sharp decline below the $950 level.
The price tested the $880 support before the bulls appeared. A low was formed near $880 and the price started a decent increase. There was a move above the $950 and $960 resistance levels. Ether cleared the 50% Fib retracement level of the downward move from the $1,256 swing high to $880 low.
Besides, there was a break above a major bearish trend line with resistance near $980 on the hourly chart of ETH/USD. The pair even climbed above the $1,100 level.
However, the bears appeared near the $1,150 resistance. Ether failed to clear the 76.4% Fib retracement level of the downward move from the $1,256 swing high to $880 low. The price is now consolidating near the $1,080 level and the 100 hourly simple moving average.
Source: ETHUSD on TradingView.com
An immediate resistance is near the $1,100 level. The next major resistance is near the $1,150 zone. A clear move above the $1,150 resistance zone may perhaps start a decent upward move. The next major resistance is near the $1,255 level. Any more gains could start a move towards the $1,320 resistance.
Fresh Decline in ETH?
If ethereum fails to rise above the $1,150 resistance, it could start a fresh decline. An initial support on the downside is near the $1,040 zone.
The next major support is near the $1,000 zone. A clear move and break below the $1,000 zone could start a major decline. In the stated case, the price could revisit the $880 support zone in the near term.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level – $1,000
Major Resistance Level – $1,150
Credit: Source link
