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    Ethereum Nears Breakout Zone, Why ETH Might Start Recovery


    Ethereum started an upside correction from $2,200 against the US Dollar. ETH might gain bullish momentum if it clears the $2,400 resistance zone.

    • Ethereum started an upside correction above $2,300 and $2,320.
    • The price is still trading below $2,400 and the 100 hourly simple moving average.
    • There is a key bearish trend line forming with resistance near $2,385 on the hourly chart of ETH/USD (data feed via Kraken).
    • The pair could start a steady recovery wave if there is a close above $2,400 and $2,450.

    Ethereum Price Faces Breakout Resistance

    Ethereum extended its decline below the $2,400 level. ETH even traded below the $2,300 before the bulls appeared near the $2,200 support zone.

    The price started a recovery wave above the $2,300 and $2,320 levels. The bulls pumped the price above $2,400, but they failed near $2,450. Recently, there was a fresh decline to $2,250. A low is formed near $2,263 and the price is now rising.

    There was a break above the $2,320 level. Ether price is trading above the 50% Fib retracement level of the recent decline from the $2,455 swing high to $2,263 low.

    However, it is still trading below $2,400 and the 100 hourly simple moving average. On the upside, an initial resistance is seen near the $2,385 level. There is also a key bearish trend line forming with resistance near $2,385 on the hourly chart of ETH/USD.

    Ethereum Price

    Source: ETHUSD on TradingView.com

    The first major resistance is near the $2,400 level. The main resistance is now forming near the $2,455 level. A close above the $2,455 level could open the doors for a decent increase. In the stated case, ether price might rise towards the $2,550 resistance.

    More Losses in ETH?

    If ethereum fails to recover above the $2,455 resistance, it could continue to move down. An initial support on the downside is near the $2,300 zone.

    The next major support is near the $2,260 level. The main breakdown support now sits near the $2,225 level. If there is a downside break below $2,225 and the $2,200 zone, ether price extend losses. In the stated case, it might even visit the $2,000 support.

    Technical Indicators

    Hourly MACDThe MACD for ETH/USD is slowly moving in the bullish zone.

    Hourly RSIThe RSI for ETH/USD is just above the 50 level.

    Major Support Level – $2,260

    Major Resistance Level – $2,455



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