- 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