Ethereum started a recovery wave above the $2,840 level. According to technical analysis by NewsBTC’s Aayush Jindal, it is currently facing a major hurdle near $2,905 and the 100 hourly SMA.
Ethereum Faces Barriers
Ethereum traded as low as $2,766 before starting a recovery wave and then managed to climb above the $2,800 resistance zone. There was a move above the $2,840 and $2,850 resistance levels. It even climbed above the 23.6% Fib retracement level of the low from the $3,040 low to $2,766 low. However, it is still below $2,900 and the 100 hourly simple moving average.
Initial resistance is seen near the $2,900 level. There is also a major bearish trend line forming with resistance near $2,900 on the hourly chart of ETH/USD. Also, the 100 hourly simple moving average is acting as a hurdle near $2,900. The next major resistance is near the $2,905 level. This is close to the 50% Fib retracement level of the decline from the $3,040 low to $2,766 low. A clear move above the $2,900 resistance could start another rise. The next major resistance could be $2,975. Any further gains could lead the price towards the $3,030 and then the $3,120 resistance.
Will Ethereum Drop?
Jindal says that if Ethereum fails to gain momentum above the $2,900 resistance, it could start a downside correction. An initial support is near the $2,860 area. The first major support is near the $2,850 level. If there is a downside break below the $2,850 support, the price could revisit the key $2,800 support zone. Any more losses could open the doors for a larger decline towards the $2,600 or even $2,550 level.
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 just above the 50 level.
- Major Support – $2,850
- Major Resistance – $2,900
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