Ethereum started a decent rise above the $2,920 resistance. According to technical analysis by NewsBTC’s Aayush Jindal, ETH needs to clear $2,980 and $3,000 to continue rising in the short term.
Ethereum Begins to Rebound
Ethereum formed a base above $2,760 and started a decent uptrend. ETH climbed above the $2,900 level and the 100 hourly simple moving average and settled as high as $2,969. It is now consolidating gains below the $2,980 resistance area and trading above the 23.6% Fib retracement level of the recent wave from the $2,756 high to $2,969 high. There is also a major bullish trend line forming with support near $2,900 on the hourly chart of ETH/USD.
Initial resistance is seen near the $2,970 level. The first major resistance is near the $2,980 level. The main breakout zone is currently near the $3,000 level. A close above the $3,000 level could set the tone for a larger rise. In this case, ETH could rise towards the $3,150 resistance.
Drops Limited on Ethereum?
Jindal says if Ethereum fails to gain momentum above the $2,980 resistance, it could initiate a downside correction. According to him, initial support is near the $2,920 area. The next major support is near the $2,900 level and the trend line. If there is a downside break below the trendline support, it could test the 50% Fib retracement level of the recent wave from the $2,756 low to $2,969 high. Any further losses may require testing of the $2,850 support and the 100 hourly simple moving average.
What Do Technical Indicators Say?
- Hourly MACD – The MACD for ETH/USD is still showing positive signs in the bullish zone.
- Hourly RSI – The RSI for ETH/USD is correcting from the 80 level.
- Major Support Level – $2,900
- Major Resistance Level – $2,980
