Ethereum Price Rebounds, Yet $3K Remains A Brutal Resistance Test

[Ben Graham]

Ethereum price extended losses and tested the $2,800 zone. ETH is now recovering some losses and might aim for more gains if it clears $2,960.

• Ethereum remained in a bearish zone and traded below $2,960.
• The price is trading just above $2,900 and the 100-hourly Simple Moving Average.
• There was a break above a bearish trend line with resistance at $2,910 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could start a fresh increase if it stays above the $2,880 zone.

Ethereum Price Eyes Steady Recovery

Ethereum price failed to remain stable above $2,920 and extended losses, like Bitcoin. ETH price declined below $2,860 and $2,840 to enter a bearish zone.

The bears even pushed the price below $2,800. The price finally tested $2,780 and is currently attempting a recovery wave. There was a move above the $2,880 resistance zone. The price cleared the 50% Fib retracement level of the downward wave from the $3,066 swing high to the $2,784 swing low.

Besides, there was a break above a bearish trend line with resistance at $2,910 on the hourly chart of ETH/USD. Ethereum price is now trading just above $2,900 and the 100-hourly Simple Moving Average.

If the bulls remain in action above $2,850, the price could attempt another increase. Immediate resistance is seen near the $2,960 level or the 61.8% Fib retracement level of the downward wave from the $3,066 swing high to the $2,784 swing low.

The first key resistance is near the $3,000 level. The next major resistance is near the $3,020 level. A clear move above the $3,020 resistance might send the price toward the $3,065 resistance. An upside break above the $3,065 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 $3,150 in the near term.

Another Decline In ETH?

If Ethereum fails to clear the $2,960 resistance, it could start a fresh decline. Initial support on the downside is near the $2,880 level. The first major support sits near the $2,840 zone.

A clear move below the $2,840 support might push the price toward the $2,800 support. Any more losses might send the price toward the $2,765 region. The main support could be $2,720.

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 – $2,840

Major Resistance Level – $2,960