24-05-2016
11:21 pm
=
Coince - Bitcoin Investment Solution
MENU

Ethereum Price Technical Analysis – Initial Target Hit, Now What?




Ethereum price moved higher and broke the $5.20 resistance area. Looking ahead, if buyers remain active more gains are likely. Intraday Support Level can be $5.20. Intraday Resistance Level may be $5.60.
Ethereum Price Technical Analysis
SPONSORED ARTICLE: Tech Analysis articles are sponsored by SimpleFx - “Keep it simple!”, 
SimpleFX is a robust online trading provider, offering trading with Forex CFDs on Bitcoins, Litecoins, indices, precious metals and energy. Offers and trading conditions simple and transparent. 

Key Highlights

  • Ethereum price moved back higher and broke the bearish trend line as highlighted in the last technical analysis.
  • Our buying with a break above the trend line resistance area idea worked, and the price reached our initial buy target.
  • There is a bullish trend line forming on the hourly chart of Ethereum price (data feed via Kraken), which can be seen as a buy zone moving ahead.

Ethereum price moved higher and broke the $5.20 resistance area. Looking ahead, if buyers remain active more gains are likely.

Ethereum Price – Buy dips?

Ethereum price corrected this past week, but found support near the $4.00-10 area where buyers successfully defended any further losses. There was a bearish trend line formed on the hourly chart of Ethereum price (data feed via Kraken), which we were waiting to be breached to enter a long trade. The price did move higher and cleared the trend line to ignite an upside move. Our initial target of $5.45 was achieved and I think it can be a good idea to wait for entering another buy trade.

There is currently a bullish trend line forming on the hourly chart of Ethereum price, which may act as a support area if the price attempts to move down once again. We can even consider buying around the trend line support. As long as the price is above it, there is a possibility of trading back higher.

Ethereum Price Technical Analysis

On the upside an initial hurdle can be around the 61.8% Fib retracement level of the last drop from the $6.47 high to $4.09 low. A break above it could call for a move towards the last swing high of $6.50.

On the downside, a break below the trend line support may call for a change in the trend in the short term.

Hourly MACD – The MACD is in the bullish slope, which is a positive sign.

Hourly RSI – The RSI is heading towards the overbought levels, calling for a correction.

Intraday Support Level – $5.20

Intraday Resistance Level – $5.60

 

Charts courtesy of Kraken via Trading View

 

Disclaimer: The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. It should not be regarded as investment/trading advice. All the information is believed to come from reliable sources. NewsBTC does not warrant the accuracy, correctness, or completeness of information in its analysis and therefore will not be liable for any loss incurred.

Published by

Aayush Jindal

Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial markets.

SUBSCRIBE TO OUR NEWSLETTER