- Ethereum price broke higher once again and managed to clear a major resistance area.
- Yesterday’s highlighted bearish trend line on the hourly chart (data feed via Kraken) was cleared by the bulls to ignite an upside rally.
- The price is almost trading near the last swing high of $12.00, and there is a chance of a minor correction before the price resumes higher.
Ethereum price surged higher one more time, and it looks like the bulls may get another chance to get in and join the ride.
Ethereum Price – Buy Dips?
Ethereum price proved once again that the bears cannot be trusted at this moment. The bullish sentiment is so strong that it’s hard for sellers to take charge. The price moved higher Intraday, and traded back towards the last swing high of $12.00.
Yesterday’s bearish trend line on the hourly chart (data feed via Kraken) was broken during the upside drift. The most important point is that the price broke the 61.8% Fib retracement level of the last drop from the $11.98 high to $8.48 low as well. Overall, there was a solid uptrend that may continue in the near term. Moreover, the price is now above the 100 simple moving average (hourly chart, data feed via Kraken), which may now act as a support in the short term.
So, if the price corrects lower from the current levels, then one might consider buying dips. An initial support can be around the 23.6% Fib retracement level of the last wave up from the $8.50 low to $11.98 high. However, the most important support area can be around the broken trend line, coinciding with the 100 hourly SMA.
Hourly MACD – The MACD is in the bullish slope, signaling bullish signs.
Hourly RSI – The RSI is around the overbought levels, calling for a minor correction in the short term.
Intraday Support Level – $11.00
Intraday Resistance Level – $12.00
Charts courtesy of Kraken via Trading View