Ethereum started a strong recovery from $2,800. ETH is back above $3,000 and it could spike higher above the $3,035 resistance, according to technical analysis by NewsBTC’s Aayush Jindal.
Ethereum Struggles For $3,000
Ethereum found strong buying interest near the $2,800 level after extending its decline below the $2,850 support zone. A bottom was formed near $2,800 and the price started a strong upward move. There was a clear move above the $2,880 and $2,920 resistance levels
. ETH climbed above the 50% Fib retracement level of the decline from the $3,179 low to $2,800 low. Besides, there was a break above a key bearish trend line with resistance near $2,950 on the hourly chart of ETH/USD.
ETH is now trading above $2,950 and the 100 hourly simple moving average. It is also consolidating near the $3,000 level. An initial resistance is seen near the $3,035 level.
The 61.8% Fib retracement level of the drop from the $3,179 high to $2,800 low is also near the $3,035 level. A clear move above the $3,035 resistance could initiate another rise. The next major resistance is near the $3,090 level. Any further gains could lead the price towards the $3,180 resistance. If there is a move above $3,180, the price could rally to $3,250.
Are Drops Limited?
Jindal says if Ethereum fails to gain momentum above the $3,035 level, it could initiate a downside correction. According to him, an initial support is near the $2,980 zone. The first major support is near the $2,950 level and the 100 hourly simple moving average. If there is a downside break below the $2,950 support, the price could start a major decline. The next key support is near the $2,915 area, below which there is a risk of a move towards $2,850.
What Do Technical Indicators Say?
- Hourly MACD – The MACD for ETH/USD is now losing momentum in the bullish zone.
- Hourly RSI – The RSI for ETH/USD is now above the 50 level.
- Major Support – $2,980
- Major Resistance – $3,035
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