- Ethereum price rally continued this past week, and it looks like there is no stopping the bulls.
- The price even traded above an important resistance area of $10, which was one of our buy targets.
- There is a bullish trend line formed on the 4-hours chart of Ethereum price (data feed via Kraken), which may continue to act as a buy zone.
Ethereum price moved above $10, which was a major hurdle. Moving ahead, more gains are likely as the uptrend seems to be intact.
Ethereum Price – Buy Near Trend Line?
Ethereum price surprised many traders, but our view of buying it played out well. I even mentioned that there is a chance of it testing the $10 handle. The price did trade higher and broke the $10 handle. I was anticipating some selling pressure near the stated level, but that did not happen. The price continued to move higher and traded as high as $10.48.
There is now a bullish trend line formed on the 4-hours chart of Ethereum price (data feed via Kraken), which is acting as a support zone. If the price moves down or corrects lower from the current levels, then the trend line support may come into play. A break below it might call for a move towards the 23.6% Fib retracement level of the last leg from the $6.35 low to $10.48 high. Let us see any further losses are possible or not if the trend line paves the way. The next support can be the 50% Fib retracement level of the last leg from the $6.35 low to $10.48 high.
On the upside, a test of $11.00-20 is possible, as long as the price is above the trend line support.
4-hours MACD – The MACD is in the bullish slope, which is a positive sign.
4-hours RSI – The RSI is around the overbought levels, calling for a minor correction.
Intraday Support Level – $9.80
Intraday Resistance Level – $10.50
Charts courtesy of Kraken via Trading View