Ethereum is nearing a breakout zone, why ETH might start a recovery

Ethereum started an upward correction from $2,200 against the US Dollar. ETH could gain bullish momentum if it breaks the $2,400 resistance zone.

  • Ethereum started an upside correction above $2,300 and $2,320.
  • The price remains below $2,400 and the 100 hourly simple moving average.
  • A key bearish trend line has formed with resistance near $2,385 on the hourly chart of ETH/USD (data feed via Kraken).
  • If the price closes above $2,400 and $2,450, the pair could start a steady wave of recovery.

Ethereum Price Faces Breaking Resistance

Ethereum extended decline Below the $2,400 level. ETH even dipped below $2,300 before bulls emerged near the $2,200 support area.

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

There was a break above the $2,320 level. Ether price is 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, 100 hourly simple moving average. On the upside, initial resistance is near $2,385. There is also a key bearish trend line forming with resistance near $2,385 on the hourly chart of ETH/USD.

Source: ETHUSD on TradingView.com

The first major resistance is near $2,400. The main resistance is now near $2,455. A close above $2,455 could open the door for a sharp rise. In the aforementioned scenario, Ethereum price could rise towards the $2,550 resistance.

ETH to lose more?

If Ethereum fails to recover above the $2,455 resistance, it could continue to decline. Initial support on the downside is near $2,300.

The next major support is near $2,260. Major breakdown support is now near $2,225. Ether price will extend losses on a break below the $2,225 and $2,200 areas. In the aforementioned scenario, it might even find support at $2,000.

Technical indicators

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

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

Major Support – $2,260

Major Resistance – $2,455

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