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Ethereum Price Tests Limits: Can It Conquer the Uphill Task?
Ethereum price started a minor recovery wave after it dropped to the $2,920 zone. ETH is rising and might face hurdles near the $3,240 zone.
- Ethereum started a minor recovery wave from the $2,920 zone.
- The price is trading below $3,250 and the 100-hourly Simple Moving Average.
- There was a break below a connecting bullish trend line with support at $3,240 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could struggle to start a fresh increase above the $3,200 resistance level.
Ethereum Price Attempts Recovery
Ethereum price failed to settle above $3,250 and extended losses like Bitcoin. ETH declined below the $3,120 and $3,000 support levels. There was a break below a connecting bullish trend line with support at $3,240 on the hourly chart of ETH/USD.
The pair even dipped below $2,950. A low was formed at $2,920 and the price is now attempting a recovery wave. There was a move above the $3,000 and $3,050 resistance levels. The price cleared the 50% Fib retracement level of the downward move from the $3,335 swing high to the $2,920 low.
However, the bears are active below the $3,200 and $3,220 levels. Ethereum price is now trading below $3,200 and the 100-hourly Simple Moving Average.
On the upside, the price seems to be facing hurdles near the $3,175 level. It is near the 61.8% Fib retracement level of the downward move from the $3,335 swing high to the $2,920 low. The first major resistance is near the $3,200 level.
The main resistance is now forming near $3,240. A clear move above the $3,240 resistance might send the price toward the $3,350 resistance. An upside break above the $3,350 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $3,450 resistance zone or even $3,500 in the near term.
Another Decline In ETH?
If Ethereum fails to clear the $3,200 resistance, it could start another decline. Initial support on the downside is near the $3,120 level. The first major support sits near the $3,050.
A clear move below the $3,050 support might push the price toward the $3,000 support. Any more losses might send the price toward the $2,920 support level in the near term. The next key support sits at $2,880.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 zone.
Major Support Level – $3,120
Major Resistance Level – $3,240
