- Ethereum price has enjoyed a nice ride recently and traded close to the $6.00 resistance area.
- The stated area was our final target and we were eyeing a test of it, which means all our buy targets are achieved.
- The price is now trading down and testing a bullish trend line on the hourly chart (data feed via Kraken), which may be broken moving ahead.
Ethereum price tested $6.00 yesterday. Now, it looks like there is a high probability that the price may correct lower in the short term.
Ethereum Price – Sell with a break?
Ethereum price climbed higher this week and traded close to our final buy target of $6.0. However, as I was anticipating sellers fought hard near the stated level, and pushed the price back down. The price is now trading 0.50 points lower, and testing a major bullish trend line formed on the hourly chart (data feed via Kraken). Looking at the last couple of candles it looks like buyers are finding it hard to defend the highlighted trend line and support area.
Moreover, the price has almost cleared the 23.6% Fib retracement level of the last wave from the $4.00 low to $6.00 high. So, there is a chance of it moving down in the near term. A break and close below the highlighted trend line and support area may call for a downside move. The most important support on the downside can be around the 50% Fib retracement level of the last wave from the $4.00 low to $6.00 high, as it is also coinciding with the all-important $5.00 area.
The price is above the 100 simple moving average (H1 chart, Kraken), which is a positive sign. On the upside, the $6.0 level may continue to act as a resistance.
Hourly MACD – The MACD is in the bearish zone, calling for a correction.
Hourly RSI – The RSI is also below the 50 level, which is a bearish sign.
Intraday Support Level – $5.50
Intraday Resistance Level – $6.00
Charts courtesy of Kraken via Trading View
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