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TA: Ethereum Reclaims $2K, Why Upsides Could Be Limited Above $2.2K

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Ethereum found support near $1,700 against the US Dollar. ETH started a recovery wave and climbed above the key $2,000 resistance zone.

  • Ethereum started a decent recovery wave above the $1,900 and $2,000 levels.
  • The price is still trading below $2,150 and the 100 hourly simple moving average.
  • There was a break above a major bearish trend line with resistance near $2,000 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could accelerate higher if it clears $2,150 and $2,200 in the near term.

Ethereum Price Breaks $2K

Ethereum extended losses below the key $2,000 support zone. ETH even broke the $1,800 level before the bulls took a stand near the $1,700 level.

A low was formed near $1,700 and the price started a fresh increase. There was a clear move above the $1,800 and $1,900 resistance levels. Besides, there was a break above a major bearish trend line with resistance near $2,000 on the hourly chart of ETH/USD.

Ether price is now trading just above the 50% Fib retracement level of the key decline from the $2,450 swing high to $1,700 low. However, it is still trading below $2,150 and the 100 hourly simple moving average.

The first major resistance is near the $2,150 level. The main resistance is now forming near the $2,200 level. It is close to the 61.8% Fib retracement level of the key decline from the $2,450 swing high to $1,700 low. A close above the $2,200 level could open the doors for a decent increase.

Ethereum Price

Source: ETHUSD on TradingView.com

In the stated case, ether price might rise towards the $2,400 resistance. An intermediate resistance may perhaps be near the $2,350 level.

Fresh Drop in ETH?

If ethereum fails to recover above the $2,200 resistance, it could start a fresh decline. An initial support on the downside is near the $2,000 zone.

The next major support is near the $1,870 level. A close below the $1,870 level might restart downtrend. In the stated case, the price could dive towards the $1,700 level. The next major support might be near the $1,620 and $1,600 levels in the near term.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is now gaining momentum in the bullish zone.

Hourly RSIThe RSI for ETH/USD is now above the 50 level.

Major Support Level – $1,870

Major Resistance Level – $2,200

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