Ethereum price is trying to ride a recovery wave above $2,380. ETH needs to break the $2,440 resistance to continue its gains in the near future.
- Ethereum is trying to recover from the $2350 zone.
- The price is trading below $2440 and the 100-hour simple moving average.
- There is a connecting bearish trendline forming with resistance at $2,400 on the hourly chart of ETH/USD (data feed from Kraken).
- To continue growing in the near term, the pair needs to overcome the resistance at $2440.
Ethereum Price Faces Resistance
Ethereum price attempted to make a recovery wave above $2440. However, ETH failed to break the $2500 resistance zone. The maximum was formed at $2488, and the price dropped again, as did Bitcoin.
It tested the $2350 support zone. The low was formed at $2347 and now the price is trying to create a recovery wave. There was a move above the $2365 and $2380 resistance levels. The price rose above the 23.6% Fibonacci retracement level of the downward wave from the swing high of $2488 to the low of $2347.
Ethereum price is currently trading below $2,440 and the 100-hour simple moving average. On the downside, the price seems to be facing hurdles near the $2,400 level. There is also a connecting bearish trendline forming with resistance at $2,400 on the hourly ETH/USD chart.
The first major resistance is around $2,440, or the 61.8% Fibonacci retracement of the downward wave from the $2,488 swing high to $2,347 low. A close above $2,440 could send Ether toward the $2,500 resistance.
The next key resistance is around $2550. A break above the $2550 resistance could send the price higher towards the $2720 resistance zone in the near term.
Another ETH Drop?
If Ethereum fails to break the $2,440 resistance, it may start a new decline. Initial support on the downside is around $2,365. The first major support is around the $2,350 zone.
A clear move below the $2,350 support could push the price towards $2,310. Any further losses could push the price towards the $2,250 support level in the near future. The next key support is at $2,120.
Technical indicators
Hourly MACD – MACD for ETH/USD is losing momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is currently above the 50 zone.
The main support level is $2,350.
Main resistance level is $2440
