Key Takeaways:
- Ethereum started a fresh increase from the $2,150 support zone.
- ETH/USD is still well below a major bearish trend line with resistance at $2,980 on the daily chart.
- The price shows some positive signs and might test the trend line resistance or even $3,000.
Ethereum (ETH) is recovering above $2,550 and the 50-day simple moving average (blue). It might soon revisit the $3,000 hurdle.
Ethereum Price Restarts Recovery Above $2,500
After retesting the key support at $2,150, Ethereum price started a fresh increase like Bitcoin. There was a move above the $2,320 and $2,400 resistance levels. The bulls pumped the price above a contracting triangle with resistance at $2,400 on the daily chart.
The price settled above the 50-day simple moving average (blue), $2,500, and the 61.8% Fib retracement level of the downward wave from the $2,823 swing high to the $2,156 low.
Ethereum is now up over 15% in a few days and the last 5-6 daily candles suggest a positive momentum. The price is now flirting with the 76.4% Fib retracement level of the downward wave from the $2,823 swing high to the $2,156 low.
On the upside, the price could face hurdles near the $2,665 level. The first major resistance sits near the $2,820 level and the last swing high. The next resistance is near the $3,000 level. There is also a major bearish trend line forming with resistance at $2,980 on the daily chart.
The trend line coincides with the 1.236 Fib extension level of the downward wave from the $2,823 swing high to the $2,156 low. A clear move above the $3,000 level could open the doors for a move toward the $3,235 level.
If ETH bulls push the price above the $3,235 resistance, there could be a strong increase. In the stated case, the price could rise toward the $3,650 level. Any more gains might initiate a move toward the $3,900 zone.
Another Drop after Rejection?
Conversely, Ethereum might struggle to rise above the $2,665 resistance or $2,820. Immediate support is near the $2,500 level and the 50-day simple moving average (blue).
The first major support sits near the $2,320 level. The next major support sits near the $2,250 level. A daily close below the $2,250 level might send ETH toward the $2,150 support. A clear downside break below the $2,150 support zone could initiate a larger decline. The next major support is near the $1,880 level.
Overall, Ethereum price is recovering and trading above $2,500. The current price action suggests that the price could rise further toward $2,820 or even $3,000 in the coming days.
The post Ethereum (ETH) Bounces Back 15%: Is $3,000 The Next Target? appeared first on CoinChapter.
