TA: Ethereum Attempts Recovery But This Resistance Is The Key

TA: Ethereum Attempts Recovery But This Resistance Is The Key

Ethereum found support near $4,065 and started a recovery against the US Dollar. ETH could continue higher if there is a clear break above $4,350.

Ethereum started a recovery wave from the $4,065 support zone.
The price is now trading above $4,250 and the 100 hourly simple moving average.
There is a key rising channel forming with support near $4,240 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could start a fresh decline if there is a break below $4,240 and $4,200.

Ethereum Price Eyes More Downsides

Ethereum found support above $4,050 and started an upside correction, similar to bitcoin. ETH price climbed above the $4,150 and $4,200 resistance levels to start a short-term recovery wave.

There was a break above the 23.6% Fib retracement level of the key decline from the $4,730 high to $4,067 low. Ether price is now trading above $4,250 and the 100 hourly simple moving average. There is also a key rising channel forming with support near $4,240 on the hourly chart of ETH/USD.

An initial resistance on the upside is near the $4,300 level. The first major resistance is near the $4,350 level. The breakout zone could be near the $4,400 level and the 100 hourly simple moving average.

Source: ETHUSD on TradingView.com

The 50% Fib retracement level of the key decline from the $4,730 high to $4,067 low is also near the $4,420 zone. A close above the $4,400 and $4,420 levels could start a fresh increase in the near term. In the stated case, the price might rise towards the $4,550 level. Any more gains could lift the price towards the next key hurdle at $4,650.

Fresh Decline in ETH?

If ethereum fails to continue higher above the $4,350 and $4,400 resistance levels, it could start a fresh decline. An initial support on the downside is near the $4,250 level.

The first key support is now forming near the $4,240 level. A downside break below the $4,240 support and the channel trend line might push the price further lower. The next key support is near $4,150, below which the price might slide towards the $4,065 level.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is losing pace in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now declining towards the 50 level.

Major Support Level – $4,240

Major Resistance Level – $4,350