Ethereum dipped towards the $880 support against the US Dollar. ETH is rallying and is eyeing a bullish breakout above the $1,150 resistance zone.
Ethereum started a decent recovery wave from the $880 support zone. The price is now trading above $1,000 and the 100 hourly simple moving average. There was a break above a major downtrend line with resistance near $980 on the hourly chart of ETH/USD (data feed via Kraken). The pair could start a decent rise if it breaks above the key $1,150 resistance zone.
Ethereum price faces hurdles
Ethereum remained in a bearish zone below the $1,050 level. ETH extended losses and traded below the $1,000 support. There was a sharp drop below the $950 level.
The price tested the $880 support before the bulls appeared. A low was formed near $880 and the price started a decent rise. There was a move above the $950 and $960 resistance levels. Ether broke above the 50% Fib retracement level of the downward move from the $1,256 high to $880 low.
Furthermore, there was a break above a major downtrend line with resistance near $980 on the hourly chart of ETH/USD. The pair even broke above the $1,100 level.
However, the bears appeared near the $1,150 resistance. Ether failed to clear the 76.4% Fibonacci retracement level of the downward move from the $1256 high to $880 low. The price is now consolidating near the $1,080 level and the 100 simple moving average hours.
Source: ETHUSD on TradingView.com
An immediate resistance is near the $1,100 level. The next major resistance is near the $1,150 zone. A clear move above the $1,150 resistance zone can perhaps start a decent up move. The next major resistance is near the $1,255 level. Further gains could start a move towards the $1,320 resistance.
New drop in ETH?
If ethereum fails to break above the $1,150 resistance, a new decline could begin. An initial support on the downside is near the $1,040 zone.
The next big support is near the $1,000 zone. A clear move and a break below the $1,000 zone could start a major drop. In the indicated case, the price could revisit the support zone of $880 in the short term.
Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level: $1,000
Major resistance level: $1,150
This post Ethereum recovery could gain pace if it removes this resistance
was published first on https://www.newsbtc.com/analysis/eth/ethereum-recovery-1100/