Ethereum Price Recovers Ground But Upsides Might Be Limited Above $2,300
Ethereum price tumbled and spiked below $2,000 on Kraken. ETH is now recovering above the $2,200 level, but the bears might be active near $2,300.
Ethereum started a major decline and dived below the $2,200 support.
The price is trading below $2,300 and the 100-hourly Simple Moving Average.
There is a connecting bearish trend line forming with resistance near $2,300 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could continue to rise if there is a clear move above $2,290 and $2,300.
Ethereum Price Nosedives
Ethereum price struggled to settle above the $2,400 resistance zone. ETH also started a major decline like Bitcoin and broke the $2,200 support zone.
There was a sharp decline and the price even spiked below the $2,000 support zone. A new yearly low was formed near $1,860 and the price is now recovering losses. There was a decent increase above the $2,000 and $2,080 resistance levels.
The price climbed above the 50% Fib retracement level of the downward move from the $2,430 swing high to the $1,860 low. However, Ethereum is still below $2,300 and the 100-hourly Simple Moving Average.
On the upside, the price is facing resistance near the $2,290 level. The first major resistance is now near $2,300. There is also a connecting bearish trend line forming with resistance near $2,300 on the hourly chart of ETH/USD. The trend line is close to the 76.4% Fib retracement level of the downward move from the $2,430 swing high to the $1,860 low.
Source: ETHUSD on TradingView.com
A close above the $2,300 resistance could send the price toward $2,400. The next key resistance is near $2,440. If there is a clear move above $2,400, there could be a drift toward $2,500. The next resistance sits at $2,500, above which Ethereum might rally and test the $2,620 zone.
Fresh Decline in ETH?
If Ethereum fails to clear the $2,300 resistance, it could start a fresh decline. Initial support on the downside is near the $2,200 level.
The first key support could be the $2,080 zone. A downside break and a close below $2,080 might start another steady decline. In the stated case, Ether could test the $2,000 support. Any more losses might send the price toward the $1,860 level.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is regaining momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level – $2,180
Major Resistance Level – $2,300
