Ethereum attempted a recovery wave from the $2,500 support. According to technical analysis by NewsBTC’s Aayush Jindal, it must surpass $2,700 and $2,750 to start a strong recovery wave.
Ethereum Faces Resistance
Ethereum formed a bottom above this region after testing the $2,500 region and started an upside correction. There was a move above the $2,580 and $2,600 resistance levels. It even climbed above the 50% Fib retracement level of the $2,750 low to $2,503 low. However, it is still trading below $2,700 and the 100 hourly simple moving average.
An immediate resistance is near the $2,660 level. This is near the 61.8% Fib retracement level of the $2,750 low to $2,503 low. The main resistance is currently forming near the $2,700 level and the 100 hourly simple moving average. There is also a major bearish trend line forming with resistance near $2,690 on the hourly chart of ETH/USD. A clear move above $2,700 could start a decent increase.
The next major resistance could be $2,750 where the price could gain bullish momentum. In the stated case, the price could rise towards the $2,880 resistance zone.
Will Ethereum Drop?
Jindal says that if Ethereum fails to start a recovery wave above the $2,700 level, it could start another decline. An initial support on the downside is near the $2,600 level. The next major support is near the $2,585 level. A downside break below the $2,585 support could push the price towards the $2,500 support level. If losses increase, the bears may target a move towards the $2,420 level in the near term.
What Do Technical Indicators Say?
- Hourly MACD – The MACD for ETH/USD is slowly gaining momentum in the bullish zone.
- Hourly RSI – The RSI for ETH/USD is now above the 50 level.
- Major Support Level – $2,585
- Major Resistance Level – $2,750
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