Ethereum recovery could pick up pace if this resistance clears

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.

Technical indicators

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

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

Major Support Level – $1,000

Major Resistance – $1,150

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