Ether Erases Early Losses, Faces Resistance Above $2K

• The relative strength index on the hourly chart shows bullish divergence and scope for further upside.
• The RSI on the four-hour chart also favors a recovery rally, while the weekly chart stochastic is signaling interim oversold conditions.
• The upside signaled by short-term indicators may run into resistance near $2,040. That level is currently housing the widely-tracked 200-day simple moving average (SMA) resistance.
• A break higher would expose the make-or-break 50-day SMA hurdle lined up at $2,310.
• "We would add exposure if ether can confirm a breakout above its 50-day MA, as with bitcoin, with next resistance on the chart above $3,000," Katie Stockton, founder, and managing partner of Fairlead Strategies, said in the weekly research note published Monday.
• Support levels to watch out for are the daily low of $1,865 followed by the June low near $1,700.

Also read: Bitcoin’s Range Play Likely to End With Bullish Breakout: Analyst