Ethereum Price Makes a Recovery, But Falls Short of Bullish Momentum

Ethereum price has recently shown signs of recovery as it bounced back from the $2,400 zone. However, the cryptocurrency is currently facing challenges in breaking above the $2,600 resistance level.

After trading above $2,500 and $2,550, Ethereum encountered resistance and is now below $2,550 and the 100-hourly Simple Moving Average. Despite this, there was a positive development as a key bearish trend line was broken with resistance at $2,550 on the hourly chart of ETH/USD provided by Kraken. For Ethereum to see further gains, it must maintain support above $2,485 in the short term.

Ethereum Price Attempts Recovery

Similar to Bitcoin, Ethereum’s price managed to stay above $2,400 and initiated a recovery wave. It successfully surpassed the $2,480 and $2,500 resistance levels. Furthermore, there was progress in breaking above the 23.6% Fibonacci retracement level of the downward wave from the $2,792 swing high to the $2,395 low.

Notably, Ethereum price exceeded the $2,550 resistance level and even broke a key bearish trend line with resistance at $2,550 on the hourly chart of ETH/USD. Despite these positive moves, resistance was encountered near the $2,600 level where bears defended the 50% Fibonacci retracement level.

At present, Ethereum price is below $2,580 and the 100-hourly Simple Moving Average. Hurdles are expected near the $2,550 level and the 100-hourly Simple Moving Average, with the primary resistance at $2,600. A successful close above $2,600 could propel Ether towards the $2,660 resistance level.

The next significant resistance level to watch is around $2,720. Breaking above this level could potentially send the price higher towards the $2,820 resistance zone in the near future.

Another Decline In ETH?

If Ethereum fails to overcome the $2,600 resistance, a new decline might occur. Initial support on the downside is located near $2,500, followed by a major support level at $2,485. A clear break below $2,485 could lead to a downward movement towards $2,420, where bulls could step in. Further losses may push the price towards the $2,320 support level, with the subsequent key support at $2,250.

Technical Indicators

Hourly MACD – The MACD for ETH/USD indicates a loss of momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD has dropped below the 50 zone.

Major Support Level – $2,485

Major Resistance Level – $2,600

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