Ethereum (ETH) Starts a Recovery Wave, Climbing Above the Critical $1,850 Support Level

Ethereum (ETH) has started a recovery wave, climbing above the critical $1,850 support level. The second-largest cryptocurrency by market capitalization is currently consolidating around $1,860 and is facing key resistance levels near $1,920.

Ethereum (ETH) price has started a recovery wave, trading above the critical $1,850 support level. The second-largest cryptocurrency is currently consolidating above the 100-hourly Simple Moving Average (SMA) and faces key resistance levels near $1,920.

If ETH manages to break through these hurdles, it could set the stage for a significant rally in the coming weeks.

Ethereum Has Begun A Recovery Wave

Ethereum’s price has found strong support around the $1,820 level, acting as a key demand zone. This support allowed buyers to step in, preventing further downside.

As a result, ETH moved past the $1,850 resistance level and is now trading above $1,860.

A recovery in Ethereum’s price aligns with the broader market’s rebound, driven by Bitcoin’s stability above the $84,000 level. However, ETH’s upward momentum has been somewhat restrained by the presence of strong resistance levels near $1,900 and $1,920.

A connecting bullish trend line at $1,860 provides immediate support for Ethereum, making it a crucial level to watch. If ETH remains above this support, the likelihood of a continued upward move increases.

On the other hand, if sellers manage to push the price below $1,820, it could indicate a continuation of the downtrend.

Further downside support is provided at the 100-hourly SMA, currently trading around the $1,844 level. A close below this SMA could indicate weakness and invite more sellers into the market.

Relative Strength Index (RSI)

The RSI on the four-hour chart is showing some overbought conditions, indicating that the upward momentum might be slowing down. However, the RSI is still in the oversold territory on the hourly chart, suggesting that there is still some room for the price to move up.

Key Levels To Watch

Immediate Resistance: $1,900, $1,920

Immediate Support: $1,860, 100-hourly SMA

Key Trend Lines: Connecting bullish trend line on the four-hour chart