Ethereum Recovery Could Face Hurdles – Can Bulls Overcome Resistance?

[Ben Graham]

Ethereum price started a fresh decline below the $4,550 zone. ETH is now attempting a recovery and might face hurdles near the $4,420 zone.

• Ethereum is still struggling to recover above the $4,500 zone.
• The price is trading below $4,500 and the 100-hourly Simple Moving Average.
• There is a key bearish trend line forming with resistance at $4,430 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could start a decent increase if there is a close above the $4,450 level in the near term.

Ethereum Price Eyes Steady Increase

Ethereum price started a recovery wave after it tested the $4,220 zone, like Bitcoin. ETH price was able to climb above the $4,280 and $4,320 resistance levels.

The price surpassed the 50% Fib retracement level of the recent decline from the $4,491 swing high to the $4,213 low. A base seems to be forming above the $4,200 level, but the bears might remain active above the $4,400 resistance zone.

Ethereum price is now trading below $4,450 and the 100-hourly Simple Moving Average. Besides, there is a key bearish trend line forming with resistance at $4,430 on the hourly chart of ETH/USD.

On the upside, the price could face resistance near the $4,385 level or the 61.8% Fib retracement level of the recent decline from the $4,491 swing high to the $4,213 low. The next key resistance is near the $4,400 level and the trend line. The first major resistance is near the $4,430 level.

A clear move above the $4,430 resistance might send the price toward the $4,500 resistance. An upside break above the $4,500 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $4,550 resistance zone or even $4,580 in the near term.

Another Decline In ETH?

If Ethereum fails to clear the $4,430 resistance, it could continue to move down. Initial support on the downside is near the $4,320 level. The first major support sits near the $4,250 zone.

A clear move below the $4,250 support might push the price toward the $4,200 support. Any more losses might send the price toward the $4,160 support level in the near term. The next key support sits at $4,120.

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 – $4,250

Major Resistance Level – $4,430