Ethereum experienced a recovery wave, surging past the $2,350 resistance mark. This upward trend signals potential for further gains, provided the cryptocurrency can overcome the $2,680 resistance level.
Initially, Ethereum rallied above the $2,350 and $2,420 thresholds. Currently, its price is trading below $2,640 and the 100-hourly Simple Moving Average (SMA). Notably, a bullish trend line has emerged, with support at $2,440 on the hourly ETH/USD chart. If Ethereum clears the significant $2,680 resistance zone, the cryptocurrency could see a steady rise in value.
The recovery wave began after a sharp decline below $2,000, bringing ETH back up to surpass the $2,200 and $2,250 levels. The cryptocurrency managed to break through the 50% Fibonacci retracement level of the previous downward trend from a $2,920 swing high to a $1,910 swing low. The hourly ETH/USD chart reflects a connecting bullish trend line with support pegged at $2,440, although resistance looms around the $2,540 to $2,550 range.
Despite these gains, Ethereum remains under the $2,650 mark and below the 100-hourly SMA. The price faces significant resistance near the $2,540 level and at the 61.8% Fibonacci retracement level from the $2,920 swing high to $1,910 swing low. The first major resistance points are near $2,680 and the 100-hourly SMA, followed by another critical resistance at $2,720. Clearing the $2,720 mark could propel Ether toward the $2,860 resistance level, with the next key resistance at $2,920. A successful break past $2,920 might push the price closer to the $3,000 resistance zone in the short term.
However, failure to surpass the $2,540 resistance level could initiate another decline. Initial support is positioned near the $2,440 mark and the trend line zone, with the first major support at around $2,365. A decisive move below the $2,365 support could drive the price down to $2,250, with further losses potentially leading ETH toward the $2,120 support level. The next critical support is set at $2,050.
Technical indicators show some promising signs. The hourly MACD for ETH/USD is gaining bullish momentum, and the hourly RSI for ETH/USD is now above the 50 zone. Major support levels stand at $2,365, while significant resistance levels are at $2,540.
