Ethereum price started a decent rise above the $1,870 resistance against the US Dollar. ETH could try to break to the upside above the key resistance at $1,920.
- Ethereum is slowly attempting a recovery wave from the $1,840 support area.
- The price is trading above $1,870 and the 100 hourly simple moving average.
- There was a break above a major bearish trend line with resistance near $1,870 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a strong increase if it surpasses the $1,880 and $1,900 resistance levels.
Ethereum price holds support
Ethereum price managed to stay above the $1,840 support. ETH formed a base and recently started a recovery wave from the $1,838 low, similar to Bitcoin.
There was a break above the $1,870 resistance. The price rose above the 23.6% Fibonacci retracement level of the downward move from the swing high of $1,916 to the swing low of $1,838. Besides, there was a break above a major descending trend line with resistance near $1,870 on the hourly chart of ETH/USD.
Ether is now trading above $1,870 and the 100 hourly simple moving average. There is also the possibility of a short term inverted head and shoulders pattern on the same chart. The immediate resistance is near the $1,880 area. The next major resistance is near $1,885 or 61.8% Fibonacci retracement level of the downward move from the $1,916 swing high to $1,838 low.
source: ETHUSD on TradingView.com
A proper move above the $1,880 and $1,885 resistance levels could send Ether towards $1,920. The next resistance is near $1,940, above which Ethereum could rally towards $2,000. Any further gains above the $2,000 resistance area could send the price towards the $2,120 resistance.
New drop in ETH?
If Ethereum fails to clear the $1,880 resistance, it could start falling again. Initial support is on the downside near the $1,870 level and the 100 hourly simple moving average.
The next major support is near the $1,855 area. If there is a break below the $1,855 support, the price could drop towards the $1,840 support. Any more losses could push the price towards $1800 or even $1740 in the upcoming sessions.
Technical indicators
MACD hourly – The MACD for ETH/USD is gaining momentum in the bullish zone.
hourly relative strength index – The RSI for ETH/USD is above the 50 level.
The main support level is $1,840
The main resistance level – 1,880 USD