Ethereum is attempting to stage a recovery wave, inching above the $2,280 mark. However, to continue moving higher in the near term, ETH must break through the formidable $2,360 resistance level. Starting from a low of approximately $2,150, Ethereum has managed a modest climb, currently trading just below $2,320 and below the 100-hourly Simple Moving Average.
The recent price action witnessed a break above a key bearish trend line, which had set resistance at $2,280 on the ETH/USD hourly chart. This break signals potential recovery, yet significant hurdles remain. The cryptocurrency initially attempted a stronger surge, aiming to surpass the $2,400 level, but faced a setback when it couldn’t overcome the $2,450 resistance zone, leading to a fresh decline below $2,320, similar to Bitcoin’s performance.
Testing the $2,150 support zone, Ethereum established a low point there before rallying above $2,220 and $2,280. This recovery saw the price rise above the 23.6% Fibonacci retracement level of the downward trend from the $2,488 high to the $2,150 low. Despite breaking through the bearish trend line, Ethereum’s upward momentum is facing resistance near $2,320.
Next, Ethereum encounters its first significant resistance at the $2,360 level, which corresponds to the 61.8% Fibonacci retracement level. A successful close above $2,360 could catalyze a move towards the next resistance at $2,420. Beyond that, breaking through the $2,480 resistance might propel ETH to challenge the $2,550 mark in the near term.
However, should Ethereum fail to clear the $2,360 resistance, another decline could be on the horizon. Initial support might come in around $2,250, with more substantial support seen near the $2,180 zone. A decisive move below $2,180 might drive the price down to $2,150, and further losses could push it towards the $2,050 support. The next crucial support level stands at $2,000.
In technical terms, the hourly MACD for ETH/USD is losing steam in the bearish zone, while the hourly RSI is moving above the 50 mark, indicating some upward momentum. The major support level to watch is $2,180, with major resistance pegged at $2,360.
