Ethereum fell to the $880 support against the US Dollar. ETH is recovering and is poised to break the $1,150 resistance.
- Ethereum started a nice recovery wave from the $880 support area.
- The price is now above $1,000 and the 100 hourly simple moving average.
- There was a break above a major bearish trend line with resistance near $980 on the hourly chart of ETH/USD (data feed via Kraken).
- If it clears the key $1,150 resistance zone, the pair is likely to start a sharp rise.
Ethereum price faces hurdles
Ethereum remains at bearish zone Below the $1,050 level. ETH extended its decline and fell below the $1,000 support. A sharp drop below $950.
The price tested the $880 support level before the bulls emerged. A low was formed near $880 and the price started to rise sharply. There was a break above the $950 and $960 resistance levels. Ether cleared the 50% Fib retracement level of the $1,256 swing high to $880 low.
Additionally, there was a break above a major bearish trend line with resistance near $980 on the hourly chart of ETH/USD. The pair even climbed above $1,100.
However, bears emerged near the $1,150 resistance. Ether failed to clear the 76.4% Fib retracement level of the $1,256 swing high to $880 low. The price is now consolidating around $1,080, 100 hourly simple moving average.
Source: ETHUSD on TradingView.com
Immediate resistance is near $1,100. The next major resistance is near $1,150. A break above the $1,150 resistance could start a nice uptrend. The next major resistance is near $1,255. Any more gains could start a move towards the $1,320 resistance.
A fresh dip in ETH?
If Ethereum fails to break the $1,150 resistance, it could start a fresh decline. Initial support on the downside is near $1,040.
The next major support is near $1,000. A clear move and a break below the $1,000 area could start a sharp decline. In the aforementioned case, the price could revisit the $880 support area in the near term.
Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level – $1,000
Major Resistance – $1,150