Ethereum recovers after hitting support at 1685
|ETH/USD enter a recovery mode, after it tumbled and hit support at 1685. Now, the recovery brought the crypto back above the 2000 mark, but it remains well below the downside resistance line drawn from the high of April 3rd, and thus, even if we see some further advances, we will consider the short-term outlook to still be negative.
The recovery may continue for a while more, with the crypto perhaps overcoming the 2195 barrier, marked by the inside swing low of May 10th. That said, the bears could still take charge from near the 2455 resistance zone, marked by the peaks of May 10th and 11th, and a potential dive could lead them to the 1865 barrier, marked by an intraday swing low formed yesterday afternoon. A dip below that barrier could pave the way towards the low of the day at 1685, the break of which would confirm a forthcoming lower low on the daily chart and may see scope for declines towards the 1395 territory, which provided support back in February 2021.
Taking a look at our short-term oscillators, we see that the RSI lies above 30, pointing up, while the MACD, although negative, runs above its trigger line, pointing north as well. Both indicators detect slowing downside speed and support the notion for some further recovery before the next leg south.
Now, in order to abandon the bearish case and start examining whether the bulls have stolen all the bears’ swords, we would like to see a decisive break above the 2745 barrier. That zone acted as a key support between April 27th and May 3rd, and its break could also confirm the break of the downside line drawn from the high of April 3rd. The bulls could then aim for the 2975 zone, which acted as a key resistance on April 28th and May 4th, the break of which could pave the way towards the high of April 21st, at 3175. Another break, above 3175, could see scope for advances towards the 3305 or 3400 zones, marked by the high of April 8th and 4th, respectively.
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