Ethereum Might Recover as it Approaches Near Breakout Zone

Ethereum began an upward correction above $2,300 and below $2,320. The price is still below $2,400, and the hourly simple moving average of 100.

On the hourly chart of ETH/USD, a strong negative trend line is forming with resistance near $2,385.

A solid recovery wave might begin if the pair closes above $2,400 and $2,450.

Chart of Ethereum with major levels

Ethereum continued to fall below the $2,400 mark. Before the bulls came near the $2,200 support zone, ETH went below $2,300.

Above the $2,300 and $2,320 marks, the price began to rebound. The bulls were able to push the price beyond $2,400, but they fell short near $2,450. The price has dropped to $2,250. The price has created a low near $2,263 and is now increasing.

Ether broke above $2,320

The price of Ether is currently trading above the 50% Fib retracement level of the latest slide from the swing high of $2,455 to the low of $2,263.

However, it remains below the price level of $2,400 and the 100 simple moving average on the hourly chart. On the upside, $2,385 serves as an early resistance level. On the hourly chart of ETH/USD, a key negative trend line with resistance near $2,385 is also formed.

The $2,400 level is the first significant resistance. The biggest resistance is currently forming near $2,455. Closing above $2,455 might pave the way for a significant gain. In this scenario, the price of Ether could surge to the $2,550 resistance level.

More Ethereum losses?

If ethereum fails to break through the $2,455 barrier, it may continue to fall. On the downside, $2,300 serves as an initial support level.

The next significant support is seen near $2,260. The $2,225 level is now the key breakdown support. If the price of Ether falls below $2,225 and the $2,200 zone, then the prices might fall even further. It may even visit the $2,000 assistance in the given scenario.

What does Technical say? 

The MACD for ETH/USD is progressively moving into the bullish zone on an hourly chart. 

RSI for ETH/USD on an hourly basis is barely around 50.

$2,260 Major Support Level

$2,455 is the major resistance level.

Liquidation is increasing in Ethereum

Recently we reported that there had been an increase in the liquidation of all cryptos, including Etherium. 

Ethereum (ETH) traders saw the largest liquidations on May 9, totaling 136.31K ETH worth approximately $326 million. This dump plummeted Ether/USDT to the lows of $2,200. 

The market cap of Ether has plummeted from $382 billion to $284.15 billion, a drop of 25 percent. 

Upcoming changes in the Ethereum protocol

The value of Ether has been unusually volatile in recent weeks, owing to a significant stock market drop and growing anticipation for a major software upgrade.

It’s being dubbed “the Merge” by investors and developers, and it’s likely to happen in the coming months. However, Ethereum programmer Tim Beiko wrote on April 11 that “the Merge” will not occur in June as previously predicted. On April 12, Beiko tweeted again, stating that it would take another few months.

It will modify how Ethereum transactions are processed, making it more efficient and long-lasting for mass adoption. Experts are waiting to watch how investors and companies creating technology on Ethereum’s platform react to the modifications. The price of Ether has been unusually volatile in recent weeks, owing to the anticipation for this major software upgrade.

At the writing of this article, Ether was trading at $ 2,360.