Ethereum (ETH) Approaches Breakout Zone; Why It May Kick-Start Recovery

ByDawn Pipkin

May 11, 2022
  • Ethereum kick-started an upside move beyond $2.3K and $2,320.
  • The crypto still trades beneath $2.4K and 100-hourly SMA.
  • The hourly chart shows a crucial bearish line developing with resistance at $2,385 (data feed from Kraken).
  • Closing beyond the $2.4K and $2,450 market might see ETH in stable recovery action.

Ethereum launched an upside move from the $2,200 mark. The alt could gain bullish strength if it overcomes the resistance at $2,400.

ETH Encounters Breakout Resistance

Ethereum stretched its leg down beneath the $2.4K mark. The altcoin even plunged beneath $2.3K before bulls stepped up around the support floor of $2.2K. Ethereum launched a recovery wave beyond the $2.3K and $2,320 zone.

Bulls appeared to propel it beyond $2.4K. However, overcoming the $2.450 hurdle proved a challenge. Recently, the leading alt saw a new drop to $2,250. That had Ether forming a low at $2,263, and prices soared at this publication.

Ethereum saw a break beyond the $2,320 mark. The token trades beyond the 50% FIB retracement zone of the $2,363 – $2,445 move.

Nevertheless, the pair remains beneath $2.4K and 100-hourly SMA. The initial obstacle to the upside stands at $2,383. Also, the ETH/USD hourly chart shows a vital bearish line developing with $2,385 resistance.

The first crucial resistance stands at $2.4K. Meanwhile, the primary resistance forms around the $2,455 mark. A decisive closing beyond $2,455 might open gated for impressive upswings for Ethereum. That can see the second-largest crypto climbing towards the hurdle at $2,550.

More Dips in Ethereum?

Failure to recover beyond the resistance at $2,455 might witness ETH on continued declines. The token will discover the first support barrier at $2.3K. Another foothold to the downside stands at $2,260.

Nevertheless, the primary breakdown support stands at $2,225. Breaching this area will explore the $2.2K mark before experiencing extended declines. That can even see ETH hitting the lower support at $2K.

For now, Ethereum seems dedicated to uptrends in the near term. Nevertheless, ETH enthusiasts should watch Bitcoin’s actions since they can affect the total crypto spectrum. Bears appear in the front seat at the moment.

Stay tuned for the latest crypto news.

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