Ethereum started a strong recovery from $2,800 against the US Dollar. ETH is back above $3,000 and eyes a major increase above the $3,035 resistance.
Ethereum extended decline below the $2,850 support zone. However, ETH found a strong buying interest near the $2,800 level. A low was formed near $2,800 and the price started a strong upward move.
There was a clear move above the $2,880 and $2,920 resistance levels. Ether price climbed above the 50% Fib retracement level of the key decline from the $3,179 swing high to $2,800 low. Besides, there was a break above a key bearish trend line with resistance near $2,950 on the hourly chart of ETH/USD.
The price is now trading above $2,950 and the 100 hourly simple moving average. It is also consolidating near the $3,000 level. On the upside, an initial resistance is seen near the $3,035 level.
The 61.8% Fib retracement level of the key decline from the $3,179 swing high to $2,800 low is also near the $3,035 level. A clear move above the $3,035 resistance might start another increase. The next major resistance is near the $3,090 level. Any more gains may perhaps send the price towards the $3,180 resistance. If there is a move above $3,180, the price could rise towards $3,250.
If ethereum fails to gain pace above the $3,035 level, it could start a downside correction. An initial support on the downside is near the $2,980 zone.
The first major support is near the $2,950 level and the 100 hourly simple moving average. If there is a downside break below the $2,950 support, the price could start a major decline. The next key support is near the $2,915 zone, below which there is a risk of a move towards $2,850.
Technical Indicators
Hourly MACD - The MACD for ETH/USD is now losing pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level - $2,980
Major Resistance Level - $3,035