Ethereum Reclaims $2,000, Why Upside Could Be Capped Above $2,200

ETH/USD found support near $1,700. ETH started a recovery wave and climbed above the key $2,000 resistance.

  • Ethereum started a nice recovery wave above $1,900 and $2,000.
  • The price remains below $2,150 and the 100 hourly simple moving average.
  • There was a break above a major bearish trend line with resistance near $2,000 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could accelerate higher if it clears $2,150 and $2,200 in the near term.

Ethereum price crosses $2,000

Ethereum extends losses to below Key $2,000 Support Zone. ETH even broke the $1,800 level before the bulls stood near $1,700.

A low was formed near $1,700 and the price started a fresh increase. There is a clear move above the $1,800 and $1,900 resistance levels. Additionally, there was a break above a major bearish trend line with resistance near $2,000 on the hourly chart of ETH/USD.

Ether price is currently trading just above the 50% Fib retracement level of the key decline from the $2,450 swing high to $1,700 low. However, it is still trading below $2,150, 100 hourly simple moving average.

The first major resistance is near $2,150. The main resistance is now near $2,200. It is near the 61.8% Fib retracement level of the key decline from the $2,450 swing high to $1,700 low. A close above $2,200 could open the door for a sharp rise.

Source: ETHUSD on TradingView.com

In the aforementioned scenario, ether price could rise towards the $2,400 resistance. Intermediate resistance is likely near $2,350.

New ETH down?

If Ethereum fails to recover above the $2,200 resistance, it could start a fresh decline. Initial support on the downside is near $2,000.

The next major support is near $1,870. A close below $1,870 could restart the downtrend. In the aforementioned scenario, the price could drop towards the $1,700 level. In the short term, the next major support levels could be around $1,620 and $1,600.

Technical indicators

Hourly MACDThe MACD for ETH/USD is now gaining momentum in the bullish zone.

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

Major Support Level – $1,870

Major Resistance – $2,200

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