Ethereum Price Back Above $2,000—Breakout or Just a Temporary Bounce?

Ethereum price started a recovery wave above the $2,000 zone. ETH is now consolidating and facing hurdles near the $2,100 resistance.

• Ethereum started a recovery wave above the $2,000 level.
• The price is trading above $2,020 and the 100-hourly Simple Moving Average.
• There is a connecting bullish trend line forming with support at $2,000 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair must clear the $2,080 and $2,100 resistance levels to start a decent increase.

Ethereum price formed a base above the $1,850 level and started a recovery wave, like Bitcoin. ETH was able to clear the $1,920 and $1,950 resistance levels.

The bulls pushed the price above the $2,000 level. Finally, the price tested the $2,100 zone. A high was formed at $2,104 and the price started a downside correction. There was a move below the $2,080 level. The price dipped below the 23.6% Fib retracement level of the upward move from the $1,980 swing low to the $2,104 high.

Ethereum price is now trading above $2,020 and the 100-hourly Simple Moving Average. There is also a connecting bullish trend line forming with support at $2,000 on the hourly chart of ETH/USD.

On the upside, the price seems to be facing hurdles near the $2,080 level. The next key resistance is near the $2,100 level. The first major resistance is near the $2,120 level. A clear move above the $2,120 resistance might send the price toward the $2,200 resistance.

An upside break above the $2,200 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $2,250 resistance zone or even $2,320 in the near term.

If Ethereum fails to clear the $2,100 resistance, it could start another decline. Initial support on the downside is near the $2,040 level. The first major support sits near the $2,025 zone and the 61.8% Fib retracement level of the upward move from the $1,980 swing low to the $2,104 high.

A clear move below the $2,025 support might push the price toward the $2,000 support. Any more losses might send the price toward the $1,950 support level in the near term. The next key support sits at $1,880.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now below the 50 zone.

Major Support Level – $2,000

Major Resistance Level – $2,100