Ethereum Price Rally Faces Resistance While Bears Eye New Declines

Ethereum has begun a recovery from the $2,025 mark, currently consolidating above $2,120. However, it may find it challenging to overcome the $2,200 resistance level.

Key Takeaways

Ethereum has started a recovery above $2,120.
The current trading price is above $2,120 and the 100-hourly Simple Moving Average (SMA).
A significant bearish trend line remains active at $2,165 on the hourly ETH/USD chart (data feed from Kraken).
If Ethereum remains below the $2,165 resistance, it may initiate a fresh decline.

Ethereum Price Rally Meets Resistance

Ethereum Price Encounters Resistance

Ethereum’s price has managed to keep above $2,000, embarking on a recovery wave similar to Bitcoin’s pattern. It has successfully breached the $2,080 and $2,120 resistance levels.

The price surpassed the 38.2% Fibonacci retracement level, stemming from the downward move between the $2,385 swing high and the $2,025 low. Notably, there was a breakout above one of the two bearish trend lines, which had its resistance set at $2,120 on the hourly chart of ETH/USD.

Currently, Ethereum is trading above $2,100 and the 100-hourly SMA; however, sellers are active near the $2,180 mark. Compounding this, a pivotal bearish trend line persists at the $2,165 resistance level.

Should bulls maintain their presence above $2,065, the price may experience another upward movement. The immediate resistance is situated near $2,165, with a key resistance level emerging at $2,200. The following significant resistance can be found around the $2,250 mark. A definitive move past the $2,250 resistance could propel the price towards the $2,300 resistance zone or the 76.4% Fibonacci retracement level linked to the downturn from the $2,385 high to the $2,025 low.

Ethereum Price Source: ETHUSD on TradingView.com

An upward breakout beyond $2,300 could signal additional gains in the following days. If this scenario unfolds, Ether may ascend toward the $2,350 or even the $2,400 resistance in the near future.

Potential Decline of ETH?

If Ethereum fails to surpass the $2,165 resistance, it might trigger a new decline. The first line of support is near $2,120, while the primary major support lies around $2,065.

A clear drop below the $2,065 support could push the price down to the $2,025 support level. Further losses might lead Ethereum to the $2,000 zone, with the main support potentially sitting at $1,940.

Technical Indicators

Hourly MACD: The MACD for ETH/USD is losing momentum while remaining in the bullish zone.
Hourly RSI: The RSI for ETH/USD is currently above the 50 level.
Major Support Level: $2,065
Major Resistance Level: $2,165