Ethereum formed a base near $1,740 and started a wave of recovery against the US Dollar. ETH is now facing major resistance near the $1,900 zone.
- Ethereum started a recovery wave above the $1,800 and $1,820 levels.
- The price is now trading above $1,820 and the 100 hourly simple moving average.
- There was a break above a major downtrend line with resistance near $1,820 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair needs to break above the $1,900 and $1,920 resistance levels to continue higher.
Ethereum Price Eyes Upside Break
Ethereum extended the drop below the $1,800 level. However, the bulls were active above the $1,700 level. The price consolidated near the $1,740 level before starting a decent move up.
There was a clear move above the $1,800 resistance zone. Ether price broke above the 50% Fib retracement level of the downward move from the $1,910 high to $1,700 base. Furthermore, there was a break above a major downtrend line with resistance near $1,820 on the hourly chart of ETH/USD.
The price is now trading well above $1,820 and the 100 hourly simple moving average. It is also consolidating above the 76.4% Fibonacci retracement level of the downward move from the $1,910 high to $1,700 base.
Source: ETHUSD on TradingView.com
On the upside, an initial resistance is near the $1900 level. The next major resistance is near the $1,920 level. A proper bullish break above the $1,920 resistance could initiate a decent rally. In the indicated case, the price of ether could rally towards the $2,000 resistance zone. Any further gains could perhaps send it towards the main $2,085 resistance zone.
New drop in ETH?
If ethereum fails to continue above the $1,920 resistance, a new drop could start. An initial support on the downside is near the $1,840 zone.
The next major support is near the $1,820 level and the 100 hourly simple moving average. A break down below the $1,820 level could trigger another sharp drop. In the indicated case, the price could revisit the support zone of $1,720 in the short term. The next major support lies near $1,700.
MACD per hour – The MACD for ETH/USD is now gaining momentum in the bullish zone.
RSI per hour – The RSI for ETH/USD is now well above the 60 level.
Major Support Level: $1,820
Major resistance level: $1,920