Ethereum started a recovery wave after finding support near $1,700 and climbed above the key $2,000 resistance zone. According to technical analysis by Aayush Jindal of NewsBTC:
Ethereum Back at $2,000
Ethereum started a fresh rise after falling below the key $1,700 support zone. There was a clear move above the $1,800 and $1,900 resistance levels. Besides, there was a break above a major bearish trend line with resistance near $2,000 on the hourly chart of ETH/USD.
ETH is now trading just above the 50% Fib retracement level of the $2,450 low to $1,700 low. However, it is still trading below $2,150 and the 100 hourly simple moving average.
The first major resistance is near the $2,150 level. The main resistance is currently forming near the $2,200 level. This is close to the 61.8% Fib retracement level of the key drop from the $2,450 low to $1,700 high. A close above the $2,200 level could open the way for a decent rise. In the indicated case, ETH could rally towards the $2,400 resistance. An intermediate resistance could be near the $2,350 level.
Will Ethereum Drop?
Jindal says that if Ethereum fails to break above the $2,200 resistance, it could start a fresh decline. An initial support on the downside is near the $2,000 area. The next major support is near the $1,870 level. A close below the $1,870 level could restart the downtrend. In the stated case, the price could decline towards the $1,700 level. The next major support could be near the $1,620 and $1,600 levels in the near term.
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 – $1,870
- Major Resistance – $2,200
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