Ethereum price started a recovery wave above the $2,350 resistance zone. ETH could gain bullish momentum if it clears the $2,680 resistance zone.

• Ethereum started a recovery wave above the $2,350 and $2,420 levels.
• The price is trading below $2,640 and the 100-hourly Simple Moving Average.
• There is a connecting bullish trend line forming with support at $2,440 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could rise steadily if it clears the $2,680 resistance zone.

Ethereum Price Aims Higher Ground

Ethereum price started a recovery wave after a nasty spike below the $2,000 level. ETH climbed above the $2,200 and $2,250 resistance levels like Bitcoin above $65,000.

There was a move above the 50% Fib retracement level of the downward wave from the $2,920 swing high to the $1,910 swing low. Moreover, there is also a connecting bullish trend line forming with support at $2,440 on the hourly chart of ETH/USD. However, the bears are active near the $2,540 and $2,550 levels.

Ethereum price is still trading below $2,650 and the 100-hourly Simple Moving Average. On the upside, the price is facing hurdles near the $2,540 level and the 61.8% Fib retracement level of the downward wave from the $2,920 swing high to the $1,910 swing low.

The first major resistance is near the $2,680 level and the 100-hourly Simple Moving Average. The next major hurdle is near the $2,720 level. A close above the $2,720 level might send Ether toward the $2,860 resistance. The next key resistance is near $2,920. An upside break above the $2,920 resistance might send the price higher toward the $3,000 resistance zone in the near term.

Another Decline In ETH?

If Ethereum fails to clear the $2,540 resistance, it could start another decline. Initial support on the downside is near $2,440 and the trend line zone. The first major support sits near the $2,365 zone.

A clear move below the $2,365 support might push the price toward $2,250. Any more losses might send the price toward the $2,120 support level in the near term. The next key support sits at $2,050.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now above the 50 zone.

Major Support Level – $2,365

Major Resistance Level – $2,540