Key Takeaways:
- Ethereum managed to stay above the key support at $2,800.
- ETH/USD is now trading well below a bearish trend line with resistance at $3,265 on the daily chart.
- The price could recover, but the bears might take a stand near $3,265 and $3,400.
NEW DELHI (CoinChapter.com) — Ethereum (ETH) found strong bids near $2,800 and recently recovered. ETH is outperforming Bitcoin and might attempt to surpass key hurdles.
Ethereum Price Holds Major Uptrend Support
Earlier this month, Ethereum saw a major decline below the $3,400 and $3,265 support levels. The price declined over 15% and even traded below $3,000, like Bitcoin dived below $60,000. Finally, the bulls took a stand near the main uptrend support at $2,800.
A low was formed at $2,815 and it seems like the bulls again managed to defend the key support around the $2,800 zone. Ether is now recovering losses above the $3,000 resistance zone. It cleared the 23.6% Fib retracement level of the downward move from the $3,975 swing high to the $2,815 low.
Ethereum is now consolidating and trading well below the 50-day simple moving average (blue). If there are more upsides, the price could face resistance near the $3,200 level.
The first major resistance sits near the $3,280 zone. There is also a connecting bearish trend line forming with resistance at $3,265 on the daily chart. The next resistance is near the 50% Fib retracement level of the downward move from the $3,975 swing high to the $2,815 low at $3,400.
A clear move above the trend line resistance and then $3,400 might call for a move to $3,500 and the 50-day simple moving average (blue). If Ethereum bulls push the price above the $3,500 resistance, there could be a fresh rally.
In the stated case, the price could rise toward the $3,700 level. Any more gains might initiate a move toward the $4,000 zone in the near term.
More Downsides In ETH?
Conversely, Ethereum might struggle to rise above the $3,265 and $3,400 resistance levels. In the stated case, it could resume its slide. The first major support sits near the $2,950 level. The main uptrend support is now forming near the $2,800 region.
If there is a daily close below the $2,800 support zone, there is a risk of a larger pullback. In the stated case, the price might test the $2,550 level. The next major support is near the $2,420 level. Any more losses might send Ether toward the $2,150 support.
Overall, Ethereum price managed to stay above $2,800 and recovered above $3,000. However, ETH bulls need to clear the $3,265 and $3,400 hurdles to start a fresh uptrend.
The post Ethereum Price Anchored at Vital Support: Are Bulls Ready to Tackle the Hurdle? appeared first on CoinChapter.
