Ethereum Price Avoids Trend Reversal But Key Hurdle Still Intact

9 January 2024

Ethereum price managed to stay above $2,170 and recovered losses. ETH consolidating and still facing many hurdles near $2,350 and $2,400.

Ethereum is attempting a fresh increase above the $2,300 resistance level.
The price is trading above $2,250 and the 100-hourly Simple Moving Average.
There was a break above a connecting bearish trend line with resistance near $2,245 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could gain bullish momentum if there is a close above the $2,350 level.

Ethereum Price Regains Strength

Ethereum price extended its decline below the $2,200 level. However, ETH remained stable near the $2,180 and $2,170 levels. A low was formed near $2,170 and the price started a fresh increase, like Bitcoin.

There was a decent increase above the $2,240 level. There was also a break above a connecting bearish trend line with resistance near $2,245 on the hourly chart of ETH/USD. The pair climbed above the $2,320 resistance, but the bears were active near $2,350.

A high was formed near $2,358 and the price is now correcting gains. There was a minor decline below the $2,320 level. The price moved below the 23.6% Fib retracement level of the upward move from the $2,170 swing low to the $2,358 high.

ETH is now trading above $2,250 and the 100-hourly Simple Moving Average. If there is a fresh increase, the price might face resistance near the $2,350 level. The next major resistance is now near $2,400.

Source: ETHUSD on TradingView.com

The main uptrend hurdle sits at $2,450. A close above the $2,450 resistance could start a decent upward move. The next key resistance is near $2,540. If the bulls push Ethereum above $2,540, there could be a rally toward $2,720. Any more gains might send the price toward the $2,800 zone.

Another Decline in ETH?

If Ethereum fails to clear the $2,350 resistance, it could start a fresh decline. Initial support on the downside is near the $2,280 level.

The first key support could be the $2,260 zone or the 50% Fib retracement level of the upward move from the $2,170 swing low to the $2,358 high. A downside break and a close below $2,260 might send the price further lower. In the stated case, Ether could test the $2,170 support. Any more losses might send the price toward the $2,050 level.

Technical Indicators

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

Hourly RSIThe RSI for ETH/USD is now above the 50 level.

Major Support Level – $2,260

Major Resistance Level – $2,350

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