Ethereum recovered well above the $ 2,750 resistance zone against the US Dollar. However, ETH price needs to clear $ 3,000 for a steady increase in the coming sessions. According to the analysis of NewsBTC’s Aayush Jindal:
- Ethereum rose more than 15% and cleared the $ 2,750 resistance zone.
- The price is still well below the $ 3,000 level and the 100 hourly simple moving average.
- There is a crucial contracting triangle formation with resistance close to $ 2,880 on the hourly chart of ETH / USD (based on Kraken data).
- The pair needs to clear $ 2,880 and $ 3,000 to return to the positive zone in the near term.
Ethereum (ETH) Faces A Significant Barrier
Ethereum started a good recovery wave and climbed above the $ 2,500 barrier. Similar to Bitcoin, ETH even crossed the $ 2,650 resistance zone to move into a short-term positive zone.
The price even cleared the $ 2,850 resistance. However, the bulls are facing a major resistance near the $ 3,000 level and the 100 hourly simple moving average. The recent high was near $ 3,006 and the price is currently consolidating its gains.
The price is still well below the $ 3,000 level and the 100 hourly simple moving average, with a break below the 23.6% Fib retracement level of the upward move from $ 22158 to $ 3,006.
There appears to be a significant contracting triangle formation on the hourly chart of ETH / USD with resistance near $ 2,880. A successful break above the pattern resistance and $ 2,900 could trigger a bullish wave. In the given situation, there is a chance that ETH price even surpasses the $ 3,000 level and 100 hourly SMA.
The next major resistance is near the $ 3,300 level. More gains could push the price up to $ 3,500.
Will Ethereum (ETH) Fall?
If Ethereum fails to break above the $ 2,880 and $ 3,000 resistance levels, it could start another decline. The first support on the downside is near the $ 2,800 level and the pattern’s trend line.
The first major support is near the $ 2,580 level. The 50% Fib retracement level of the move from $ 2,158 to $ 3,006 is also near the $ 2,580 level. More losses could trigger a bigger drop in the coming sessions.
- Hourly MACD – The MACD for ETH / USD is slowly moving towards the bearish zone.
- Hourly RSI – The RSI for ETH / USD is currently approaching the 50 level.
- Major Support Level – $ 2,580
- Major Resistance Level – $ 2,880