Ethereum (ETH) Topside Bias Vulnerable If It Struggles Below $2.3K
Ethereum is struggling to gain pace above $2,300 and $2,320 against the US Dollar. ETH price could decline sharply if there is a break below $2,220.
Ethereum is showing a few bearish signs below the $2,320 resistance zone.
The price is still above the $2,200 zone and the 100 hourly simple moving average.
There is a key bullish trend line forming with support near $2,280 on the hourly chart of ETH/USD (data feed via Kraken).
The pair must settle above $2,320 for more upsides in the near term.
Ethereum Price is Facing Hurdles
Ethereum remained stable above the $2,200 support zone, similar to bitcoin near $38,000. However, ETH price seems to be facing a strong resistance near the $2,320 zone.
The bulls made a couple of attempts to gain strength above $2,320, but they failed. A high was formed near $2,346 and the price is now correcting gains. It traded below the 23.6% Fib retracement level of the upward move from the $2,153 swing low to $2,346 high.
The bulls are now protecting the $2,280 level. There is also a key bullish trend line forming with support near $2,280 on the hourly chart of ETH/USD.
Source: ETHUSD on TradingView.com
The next key support is near the $2,250 level and the 100 hourly simple moving average. It is near the 50% Fib retracement level of the upward move from the $2,153 swing low to $2,346 high. The main support is now near the $2,220 and $2,200 levels.
A clear downside break below the $2,200 support zone could set the pace for a larger decline. The next major support could be near the $2,120 level, followed by the main $2,050 support zone.
Upside Break in ETH?
If Ethereum remains stable $2,220, it could attempt an upside break. An immediate resistance on the upside is near the $2,320 level.
A clear break and close above $2,320 could set the pace for a larger increase. In the stated case, the price could easily rise towards the $2,400 level. The next key resistance is near the $2,450 level, above which the price might test $2,500 in the near term.
Hourly MACD – The MACD for ETH/USD is now losing pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now struggling to stay above the 50 level.
Major Support Level – $2,220
Major Resistance Level – $2,320
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