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- Ethereum price is trading near a crucial area, and both buyers and sellers must be very careful moving ahead.
- There is a contracting triangle pattern forming on the 4-hours chart (data feed via Kraken), which may ignite a lot of moves in the near term.
- A break below the triangle support area may call for a change in the trend for Ethereum price.
Ethereum price traded higher during the past couple of days. However, it is now trading near a major breakout zone at $6.60-65.
Ethereum Price – Watch Out For a Break
Ethereum price after correcting lower traded back higher this past week, and currently trading near the last swing high of $6.60-65. It represents a major resistance area, and acted as a barrier for buyers on many times. A contracting triangle pattern is forming on the 4-hours chart (data feed via Kraken), which can be seen as a formation for the next move.
A break above the $6.65 level may call for more gains in the near term. The price could even head towards $7.0 in that situation. On the downside, a break below the triangle support trend line may take the price towards the 100 simple moving average (4-hours, data feed via Kraken). An initial support a bullish trend line formed via connecting swing lows. A break below it might call for a test of the 23.6% Fib retracement level of the last wave from the $3.30 low to $6.62 high.
However, the most important support is around the 100 MA, which is just below the 38.2% Fib retracement level of the last wave from the $3.30 low to $6.62 high.
4-hours MACD – The MACD may change the slope to the bullish zone, which is a warning to sellers.
4-hours RSI – The RSI is above the 50 level, calling for a bullish break in the short term.
Intraday Support Level – $5.80
Intraday Resistance Level – $6.65
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.