- Ethereum started a recovery of $2,940.There is a major bullish trend line forming with support near $2,900.
- The pair must clear the $2,980 and $3,000 resistance to continue higher.
Today, May 05, 2022, Ethereum (ETH) began a decent increase above its $2,920 resistance against the US dollar. After having a few difficult weeks, the second-largest crypto has entered a recovery phase. At the time of writing, Ethereum is trading $2,940.91 with a 24-hour trading volume of $18,397,671,445. ETH is up by 5.27% in the last 24-hours.
According to CryptoQuant data, the number of Ethereum moving out of Coinbase hit its highest level on May 4.
Meanwhile, it is important to know that the maximum height of a falling wedge is approximately $395. If the Ethereum bulls rally above its potential breakout point of $2,850, it is more possible to witness a price move towards $3,150.
When looking at technical analysis, these falling wedges settle once the price sees a breakout out of their upper trend and move towards a level that is equal to the highest distance that lies between the pattern’s upper and lower price formation when looked at from the escape point.
Notably, if ETH fails to achieve a rate above the $2,980 resistance, it could start a downside correction. In fact, initial support on the downside is around the $2,920 zone. The next support is around the $2,900 level and the trend line.
Furthermore, if there is a downside break below the trend line support, ETH price might test the 50% Fib retracement level of the recent wave from the $2,756 swing low to the $2,969 high. Any additional losses might reach for a test of the $2,850 support and the 100 hourly simple moving average.