Ethereum’s price began a recovery wave above the $2,320 resistance but has struggled to gain momentum for a move above the $2,385 resistance. After forming a base near $2,250, ETH initiated an upward trend, clearing the $2,300 and $2,320 resistance levels. This upward movement was marked by a break above a short-term declining channel with resistance at $2,290 on the hourly ETH/USD chart.
The pair managed to surpass the 50% Fibonacci retracement level of the decline that stretched from the $2,465 swing high to the $2,252 low, spiking briefly above $2,360 before bears reasserted control. The rally faced rejection near the 61.8% Fibonacci retracement level of the same decline.
Currently, Ethereum is trading below $2,350 and the 100-hourly Simple Moving Average. On the upside, the price encounters significant barriers around the $2,340 level, with the first major resistance near $2,385 and the next key resistance around $2,420. Should there be an upside break past the $2,420 resistance, Ethereum could see further gains, potentially rising toward the $2,450 resistance zone. Beyond that, the momentum might push ETH toward the $2,550 resistance level.
However, if Ethereum fails to breach the $2,340 resistance, it risks another downward movement. Immediate support on the downside lies near $2,300, with the first major support found near the $2,250 zone. A decisive move below the $2,250 support could drive the price down to around $2,180. Further losses might lead Ethereum to test the $2,120 support level, and possibly the next key support at $2,050.
Technical indicators are providing mixed signals. The hourly MACD for ETH/USD is losing momentum in the bullish zone, while the hourly RSI is hovering above the 50 zone. The major support level is identified at $2,300, whereas major resistance is pegged at $2,385.
