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.
- Ethereum price climbed higher further and established a new high of $15.16 where there was a strong reaction.
- The last couple of 4-hours candles look bearish, which poses a risk of a downside move.
- There is a bullish trend line formed on the 4-hours chart (data feed via Kraken), which may act as a pivot area in the near term.
Ethereum price looks like created a short-term top. A move below the $12.00 area may take the price towards the $10.50 support area.
Ethereum Price – Larger Correction Likely Towards $10.50?
Ethereum price spiked on more time during the past couple of sessions, and traded as high as $15.16. There was a strong selling pressure noted around the stated level that took the price down. The last couple of 4-hours candles are very bearish, and suggesting that the bulls struggled to compete with the bulls.
The price already traded near a bullish trend line formed on the 4-hours chart (data feed via Kraken), which protected a downside break. However, if the bears gain control, then there is a chance of the price breaking the trend line support area for a move towards $10.50.
An important point is that the trend line support is coinciding with the 50% Fib retracement level of the last wave up from the $8.50 low to $15.16 high. So, a break below the trend line support area may be a bearish call in the short term for Ethereum price. The next support in that case may be around the 76.4% Fib retracement level of the last wave up from the $8.50 low to $15.16 high.
4-hours MACD – The MACD may change the slope to the bearish zone, which may call for losses.
4-hours RSI – The RSI is above the 50 level, which means the bears are not in control.
Intraday Support Level – $11.80
Intraday Resistance Level – $14.50
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.