"Just when it seemed to recover, another resistance line"...Ethereum, Emergency to Defend $2,000

▲ Ethereum (ETH)

Ethereum (ETH) showed a recovery trend after moving above the $2,110 range, but an analysis suggests it could fall back into a downtrend if it fails to break the $2,150 resistance line. For the short-term uptrend to be maintained, buying pressure must continue above $2,100, and it must successively overcome the $2,150 and $2,175 resistance lines.

NewsBTC reported on May 21 (local time) that Ethereum began its recovery after maintaining buying pressure above the $2,065 support line and breaking past the $2,080 resistance line. Ethereum surpassed the Fibonacci 50% retracement line of the decline from the $2,198 high to the $2,075 low, and also broke through the bearish trend line that had formed $2,110 resistance on the ETH/USD hourly chart based on Kraken data.

However, Ethereum is currently trading below $2,150 and the 100-hour Simple Moving Average. Immediate resistance is formed near $2,140, with the first key resistance line set at $2,150. This range coincides with the Fibonacci 61.8% retracement line of the decline from the $2,198 high to the $2,075 low.

If Ethereum clearly breaks the $2,175 resistance line, it could rise to the $2,200 resistance line. An upward breakout above the $2,200 range would increase the potential for further short-term gains, in which case it could rise to the $2,250 resistance range or even $2,265, according to analysis.

Conversely, if it fails to break the $2,150 resistance line, Ethereum could enter a new downtrend. The initial support line below is $2,120, and the first major support line is the $2,080 range. A clear break below the $2,080 support line could lead to a drop to $2,020, and if further losses continue, there's a possibility it could fall to the $2,000 range. The major support line is suggested at $1,940.

In terms of technical indicators, the hourly Moving Average Convergence Divergence (MACD) is building momentum in the bullish zone, and the hourly Relative Strength Index (RSI) is above 50. However, as $2,150 remains a major resistance line, Ethereum's short-term recovery will depend on whether it breaks through this level.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*