Ethereum Bulls Must Conquer $3,050 Or Momentum Quickly Fades

[Ben Graham]

Ethereum price started a minor recovery wave from the $2,865 zone. ETH is now consolidating losses and might aim for a recovery if it clears $3,050.

• Ethereum started a consolidation phase below $3,050.
• The price is trading below $3,040 and the 100-hourly Simple Moving Average.
• There was a break above a contracting triangle with resistance at $2,950 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could start a fresh increase if it stays above the $2,900 zone.

Ethereum Price Aims Recovery

Ethereum price failed to remain stable above $3,050 and extended losses, like Bitcoin. ETH price declined below $3,000 and $2,920 to enter a bearish zone.

The bears even pushed the price below $2,880. The price finally tested $2,865 and is currently consolidating losses. There was a minor upside above the 23.6% Fib retracement level of the downward wave from the $3,365 swing high to the $2,865 swing low.

Besides, there was a break above a contracting triangle with resistance at $2,950 on the hourly chart of ETH/USD. Ethereum price is now trading below $3,040 and the 100-hourly Simple Moving Average. If the bulls can protect more losses below $2,900, the price could attempt another increase.

Immediate resistance is seen near the $3,050 level. The first key resistance is near the $3,110 level or the 50% Fib retracement level of the downward wave from the $3,365 swing high to the $2,865 swing low. The next major resistance is near the $3,175 level. A clear move above the $3,175 resistance might send the price toward the $3,220 resistance.

An upside break above the $3,220 region might call for more gains in the coming days. In the stated case, Ether could rise toward the $3,280 resistance zone or even $3,300 in the near term.

Another Drop In ETH?

If Ethereum fails to clear the $3,050 resistance, it could start a fresh decline. Initial support on the downside is near the $2,910 level. The first major support sits near the $2,880 zone.

A clear move below the $2,880 support might push the price toward the $2,865 support. Any more losses might send the price toward the $2,820 region. The main support could be $2,750.

Technical Indicators

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

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

Major Support Level – $2,880

Major Resistance Level – $3,050