- Ethereum price as stated in the weekly analysis started a recovery phase, and if all goes well, more gains are possible.
- The price is testing a bearish trend line formed on the hourly chart (data feed via Kraken), which may be considered as a short-term breakout zone.
- On the downside, the 100 hourly simple moving average is a support area, which may act as a buy zone.
Ethereum price may make a sustained move higher. However, buyers need to take the price above $4.60-80 to gain control in the short term.
Ethereum Price – Trend Line Resistance
Ethereum price after trading down towards the $3.30 area managed to hold the ground and currently correcting higher. It has already recovered some ground and at the moment facing a major resistance area near a bearish trend line formed on the hourly chart (data feed via Kraken). The highlighted bearish trend line may play a crucial role for Ethereum price in the near term.
The 50% Fib retracement level of the last drop from the $5.90 high to $3.31 low is also positioned around the highlighted bearish trend line. It suggests that there is a crucial resistance near $4.64-70 where buyers may struggle, and it won’t be easy for them to surpass the seller’s strength. A break above it might take the price higher towards the 76.4% Fib retracement level of the last drop from the $5.90 high to $3.31 low.
On the downside, there is a major support area formed near the 100 simple moving average (H1 chart, Kraken). If the price moves down or corrects, then there is a chance of buyers appearing around the 100 SMA.
Hourly MACD – The MACD may change the slope to bearish, which is a sign that buyers are struggling to clear the trend line resistance area.
Hourly RSI – The RSI is above the 50 level, which is a positive sign.
Intraday Support Level – $4.30
Intraday Resistance Level – $4.70
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.