Ethereum Price Approaches Key $3K Test, Recovery Momentum at Inflection Point

Ethereum price started a recovery wave above $2,850. ETH faces resistance near $3,000 and might start a fresh decline in the near term.

• Ethereum started a recovery wave above $2,800 and $2,850.
• The price is trading above $2,850 and the 100-hourly Simple Moving Average.
• There is a key bearish trend line forming with resistance at $2,970 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could continue to move down if it settles below the $2,840 zone.

Ethereum Price Faces Resistance

Ethereum price managed to stay above $2,650 and started a recovery wave, like Bitcoin. ETH price was able to climb above the $2,740 and $2,800 levels.

The bulls were able to push the price above the 50% Fib retracement level of the downward move from the $3,058 swing high to the $2,620 low. However, the bears seem to be active below the $3,000 resistance zone. There is also a key bearish trend line forming with resistance at $2,970 on the hourly chart of ETH/USD.

Ethereum price is now trading above $2,840 and the 100-hourly Simple Moving Average. If there is another recovery wave, the price could face resistance near the $2,950 level and the 76.4% Fib retracement level of the downward move from the $3,058 swing high to the $2,620 low.

The next key resistance is near the $2,970 level. The first major resistance is near the $3,000 level. A clear move above the $3,000 resistance might send the price toward the $3,050 resistance. An upside break above the $3,050 region might call for more gains in the coming days. In the stated case, Ether could rise toward the $3,120 resistance zone or even $3,250 in the near term.

Another Drop In ETH?

If Ethereum fails to clear the $2,950 resistance, it could start a fresh decline. Initial support on the downside is near the $2,840 level. The first major support sits near the $2,780 zone.

A clear move below the $2,780 support might push the price toward the $2,740 support. Any more losses might send the price toward the $2,650 region in the near term. The next key support sits at $2,550 and $2,500.

Technical Indicators

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

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

Major Support Level – $2,800

Major Resistance Level – $2,950

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