Ethereum recovered nicely above the $2,750 resistance zone against the US Dollar. However, ETH price must clear $3,000 for a steady increase in the coming sessions.
Ethereum is up over 15% and it cleared the $2,750 resistance zone.
The price is still well below the $3,000 level and the 100 hourly simple moving average.
There is a crucial contracting triangle forming with resistance near $2,880 on the hourly chart of ETH/USD (data feed via Kraken).
The pair must clear $2,880 and $3,000 to move back into a positive zone in the near term.
Ethereum Price is Facing a Key Hurdle
Ethereum started a decent recovery wave and it climbed above the $2,500 barrier. ETH even surpassed the $2,650 resistance zone to move into a short-term positive zone, similar to bitcoin.
The price even cleared the $2,850 resistance. However, the bulls are facing a major resistance near the $3,000 level and the 100 hourly simple moving average. The recent high was near $3,006 and the price is now consolidating gains.
It is still well below the $3,000 level and the 100 hourly simple moving average. There was a break below the 23.6% Fib retracement level of the upward move from the $2,158 swing low to $3,006 high.
Source: ETHUSD on TradingView.com
It seems like there is a crucial contracting triangle forming with resistance near $2,880 on the hourly chart of ETH/USD. A successful break above the triangle resistance and $2,900 could spark a bullish wave. In the stated case, there are chances that ether price could even surpass the $3,000 level and the 100 hourly SMA.
The next major resistance is near the $3,300 level. Any more gains could lead the price towards the $3,500 level.
Fresh Decline in ETH?
If Ethereum fails to continue higher above the $2,880 and $3,000 resistance levels, it could start another decline. An initial support on the downside is near the $2,800 level and the triangle trend line.
The first key support is near the $2,580 level. The 50% Fib retracement level of the upward move from the $2,158 swing low to $3,006 high is also near the $2,580 level. Any more losses could trigger a larger decline in the coming sessions.
Hourly MACD – The MACD for ETH/USD is slowly moving into the bearish zone.
Hourly RSI – The RSI for ETH/USD is now approaching the 50 level.
Major Support Level – $2,580
Major Resistance Level – $2,880