Ethereum’s price has recently begun a recovery wave from the $1,910 zone, showing a notable gain of over 10% as it consolidates near the $2,500 mark. This recovery phase started beyond the $2,250 and $2,400 levels, but the price is currently trading below $2,650 and the 100-hourly Simple Moving Average.
There was a significant breakout above a key bearish trend line with resistance at $2,400 on the hourly chart of ETH/USD. Despite this, the pair may face challenges in overcoming the $2,680 resistance zone.
The downward momentum initially dragged Ethereum’s price below the $2,500 support, and it pulled Bitcoin down as well, with ETH briefly dipping under the $2,200 support and spiking below the $2,000 level before witnessing a bullish response. The low was formed at $1,911, prompting a recovery wave that pushed the price above the $2,250 threshold. The price subsequently crossed the 50% Fib retracement level from the $2,920 swing high to the $1,910 swing low.
Additionally, the breakout above the key bearish trend line resistance at $2,400 on the hourly chart of ETH/USD provided some bullish momentum. Nonetheless, Ethereum is still trading under the $2,650 mark and the 100-hourly Simple Moving Average.
On the upside, Ethereum encounters resistance around the $2,550 level and the 61.8% Fib retracement level of the downward move from the $2,920 high to the $1,910 low. The initial major resistance is positioned near the $2,680 level, followed by a crucial hurdle at $2,650. If ETH closes above the $2,650 level, it might target the $2,850 resistance, with the next significant resistance around $2,880. An upward break above this level might drive the price toward the $3,000 zone in the short term.
Conversely, if Ethereum fails to surpass the $2,550 resistance, it could face another decline. Immediate support on the downside is found near $2,365, with the first major support zone near $2,250. A decisive move below the $2,250 support might drive the price further down towards the $2,050 region. Further losses could push ETH towards the $2,000 support level, with the next critical support at $1,920.
Technical indicators suggest bullish momentum, with the hourly MACD showing gains in the bullish zone and the hourly RSI above the 50-mark. Major support is identified at $2,365, while major resistance is noted at $2,550.
