Ethereum Price Teases a Breakout—Can This Spark a Momentum Shift

Ethereum price started a recovery wave above the $1,880 zone. ETH is now consolidating and facing hurdles near the $2,020 resistance.

• Ethereum started a recovery wave above the $1,920 level.
• The price is trading below $1,950 and the 100-hourly Simple Moving Average.
• There is a short-term rising channel forming with support at $1,980 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair must clear the $2,020 and $2,040 resistance levels to start a decent increase.

Ethereum Price Faces Resistance

Ethereum price formed a base above the $1,820 level and started a recovery wave, like Bitcoin. ETH was able to clear the $1,880 and $1,920 resistance levels.

The bulls pushed the price above the $1,950 level. There was a move above the 50% Fib retracement level of the downward wave from the $2,068 swing high to the $1,936 low. However, the bears seem to be active near the $2,020 resistance zone.

Ethereum price is now trading below $1,950 and the 100-hourly Simple Moving Average. There is also a short-term rising channel forming with support at $1,980 on the hourly chart of ETH/USD.

On the upside, the price seems to be facing hurdles near the $2,020 level. The next key resistance is near the $2,040 level or the 76.4% Fib retracement level of the downward wave from the $2,068 swing high to the $1,936 low.

The first major resistance is near the $2,040 level. A clear move above the $2,040 resistance might send the price toward the $2,120 resistance. An upside break above the $2,120 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $2,150 resistance zone or even $2,250 in the near term.

Another Drop In ETH?

If Ethereum fails to clear the $2,040 resistance, it could start another decline. Initial support on the downside is near the $1,980 level. The first major support sits near the $1,950 zone.

A clear move below the $1,950 support might push the price toward the $1,880 support. Any more losses might send the price toward the $1,850 support level in the near term. The next key support sits at $1,800.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now above the 50 zone.

Major Support Level – $1,880

Major Resistance Level – $2,040

Source