Ethereum, the second-largest cryptocurrency, is making attempts to recover above the crucial $1,855 zone. Currently trading above $1,865 and the 100-hourly Simple Moving Average, Ethereum faces a major obstacle near the $1,900 resistance. A break above this level could initiate a significant increase in price. Let’s analyze the recent developments and key levels of Ethereum’s potential recovery.
Steady Recovery and Resistance:
Ethereum exhibited stability above the $1,825 support zone, leading to a gradual recovery. The price climbed slightly above $1,850, similar to Bitcoin. Bulls successfully pushed the price above the 100-hourly Simple Moving Average and broke the recent decline’s 50% Fibonacci retracement level from the $1,955 swing high to the $1,825 low. However, selling pressure emerged near the $1,900 resistance zone.
Bearish Trend Line and Immediate Resistance:
An important bearish trend line is forming with resistance near $1,900 on the hourly chart of ETH/USD. Ethereum is currently trading above $1,865 and the 100-hourly Simple Moving Average. Immediate resistance is anticipated near the $1,890 level, followed by the major resistance zone at $1,900, which aligns with the trend line. This trend line coincides with the 61.8% Fibonacci retracement level of the recent decline from $1,955 to $1,825.
Potential Upside Targets and Further Gains:
A decisive close above the $1,900 resistance could pave the way for a substantial increase toward $1,975. The next significant resistance awaits near the $2,000 level, followed by potential targets at $2,050 and $2,120. Should Ethereum continue to gather momentum, these levels may come into play.
Downside Risks and Key Support Levels:
In the event of a failure to surpass the $1,900 resistance, Ethereum might experience another decline. Initial support lies near $1,865, coinciding with the 100-hourly Simple Moving Average. The first significant support sits at $1,825, and a breach below this level could potentially lead to a larger downward move. The subsequent major support is around $1,740, with further losses possibly extending toward the $1,720 level in the short term.
Technical Indicators and Momentum:
The hourly MACD for ETH/USD shows a loss of momentum in the bullish zone, suggesting a cautious outlook. On the other hand, the hourly RSI is now above the 50 level, indicating a positive sentiment.
Conclusion:
Ethereum’s recovery attempts are encountering resistance near the $1,900 level, represented by a bearish trend line. A breakthrough above this resistance could trigger a notable price increase, targeting $1,975 and potentially even $2,000. Conversely, a failure to surpass the resistance may lead to a downside movement. It is crucial to monitor key support levels, particularly $1,825, as a breach below that level could result in further losses. Traders and investors should closely observe the price action and market indicators to gauge Ethereum’s future trajectory.
