The price of Ethereum has started a wave of recovery above the $1,780 level against the US dollar. ETH needs to clear $1,820 to start a decent rally in the near term.
- Ethereum is currently consolidating below the $1,820 resistance zone.
- The price is trading below $1,820 and the 100-hour simple moving average.
- A major bearish trend line is forming with resistance near $1,818 on the hourly chart of ETH/USD (data source via Kraken).
- The pair could start a decent rally if it settles above the $1,820 resistance.
Ethereum’s price recovery faces a roadblock
Ethereum price extended its decline below the $1800 zone. ETH even dropped below the $1,780 level before bulls emerged near $1,760, similar to bitcoin.
A low was formed near $1,761 and the price is currently attempting a recovery. It is trading above the 23.6% Fib retracement level of the key decline from the $1,872 high to $1,761 low. Ether is now trading below $1,820 and 100 hour simple moving average.
A major bearish trendline is also forming on the hourly chart of ETH/USD with resistance near $1,818. The trendline is near the 50% Fib retracement level of the key decline from the $1,872 swing high to the $1,761 low.
Immediate resistance is near the $1,818 zone and the trend line. The first major resistance is near the $1,820 level. A close above the $1,820 resistance could send Ether towards $1,845.
Source: ETHUSD on TradingView.com
Another resistance is located near $1,875, above which Ethereum could rise to $1,920. Any further gains above the $1,920 resistance zone could push the price towards the $2,000 resistance.
Another drop in ETH?
If Ethereum fails to clear the $1,820 resistance, it could trigger another bearish wave. Initial downside support is near the $1,785 level.
Another major support is near the $1,760 zone or the recent swing low. If there is a close below the $1,760 support, the price could start another big decline. In the said case, the price may fall towards the $1,700 support zone. Any further losses may send the price towards the $1,660 level in the coming days.
Technical indicators
Hourly MACD – MACD for ETH/USD is losing strength in the bullish zone.
Hourly RSI – The RSI for ETH/USD is above the 50 level.
Major Support Level – $1,785
Major resistance level – $1,820
