Ethereum is attempting a breakout to the upside, according to technical analysis by NewsBTC’s Aayush Jindal, after falling below the $2,525 support zone.
Ethereum Faces Barriers
Ethereum rebounded sharply after trading as low as $2,486. There was a clear move above the $2,525 and $2,550 resistance levels. The bulls pushed ETH above the 50% Fib retracement level of the recent decline from the $2,624 low to $2,486 low. It is currently facing resistance near the $2,580 level. There is also a key bearish trend line forming with resistance near $2,580 on the hourly chart of
ETH/USD. The trend line is near the 61.8% Fib retracement level of the low from the $2,624 low to $2,486 low.
The first major resistance is seen near the $2,625 level. The next major resistance is near the $2,650 level. A close above the $2,650 resistance could start a decent increase. In the stated case, ETH could rise to the $2,750 level.
Will Ethereum Drop?
Jindal says that if Ethereum fails to start a fresh increase above the $2,625 level, it could start another decline. An initial support on the downside is near the $2,550 level. The next major support is near the $2,500 level. A close below the $2,500 support zone could even push the price below $2,480. The next major support could be near the $2,420 level, where the bulls could take a position. If they fail, there is a risk of a move towards the $2,350 level of ETH.
What Do Technical Indicators Say?
- Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bullish zone.
- Hourly RSI – The RSI for ETH/USD is now above the 50 level.
- Major Support Level – $2,500
- Major Resistance Level – $2,650
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