Ethereum Price Gains May Fade Soon: Can Bulls Sustain the Recovery?

The price of Ethereum is trying to bounce back from around $2,400. For it to move upwards significantly in the short term, it needs to surpass $2,550 first.

    Ethereum started a decent recovery wave above the $2,450 level.
    The price is trading above $2,500 and the 100-hourly Simple Moving Average.
    There was a break above a connecting bearish trend line with resistance at $2,485 on the hourly chart of ETH/USD (data feed via Kraken).
    The pair must stay above $2,500 to start another increase in the near term.

Ethereum Price Starts Recovery

The cost of Ethereum continued to dip below the $2,500 mark, and it briefly touched the $2,400 support. However, eventually, the bullish sentiment emerged, pushing the price upward beyond the $2,450 barrier, similar to Bitcoin‘s recovery trend.

The price of ETH surpassed the barriers at $2,480 and $2,500, and it also exceeded the 50% Fibonacci retracement level from the peak at $2,595 to the trough at $2,400. Additionally, there was a breakthrough of a bearish trend line offering resistance at approximately $2,485 on the hourly chart of ETH/USD.

Currently, Ethereum’s price is above $2,500 and also higher than its 100-hour moving average. However, on the positive side, it appears that Ethereum is encountering resistance around the $2,550 mark. This level is near where a significant portion (76.4%) of the downward move from the high of $2,595 to the low of $2,400 would be retraced according to Fibonacci retracement levels.

Ethereum Price Gains May Fade Soon: Can Bulls Sustain the Recovery?

Initial significant resistance can be found around the $2,600 mark. Breaking through this level could potentially push Ether towards the $2,650 resistance. Subsequently, a crucial resistance lies at approximately $2,720. Overcoming this hurdle might lead to further increases, targeting the $2,800 resistance area in the short term.

Another Decline In ETH?

If Ethereum doesn’t manage to break past the $2,550 barrier, there might be a new drop in its price. A potential first line of defense on the lower end is around $2,495. The primary significant support level can be found close to the $2,450 region.

A significant drop below the $2,450 resistance point could potentially drive the price down to around $2,400. At this level, buyers might reappear. If the decline continues, it may lead to the $2,320 support area in the short term. The crucial support lies at $2,250.

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 – $2,450

Major Resistance Level – $2,550

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2024-09-03 06:22