- Ethereum price moved a few points higher and then found sellers for a downside move.
- My idea of selling in the short term worked perfectly and all targets were hit intraday.
- Yesterday’s highlighted bearish trend line on the hourly chart (data feed via Kraken) worked perfectly and pushed the price down.
Ethereum price was a perfect sell intraday as forecasted. It looks like there is a room for another downside move if all goes well.
Ethereum Price – $12.50 as Resistance
Ethereum price was aligned for a short-term downside move, as forecasted in yesterday’s post. I forecasted selling near a major resistance area, which was formed near a bearish trend line on the hourly chart (data feed via Kraken). The trend line resistance area acted as a perfect barrier and pushed the price down to hit all our sell targets.
Now what? I think the price has started to feel selling pressure and the bulls need to be cautious in the near term. There is another bearish trend line formed on the same chart, and it looks like it may be the next hurdle for the bulls and a sell area for the bears. As long as the price is below the 100 simple moving average (hourly, data feed via Kraken), it is may remain under a bearish pressure.
Moreover, on the upside the 50% Fib retracement level of the last move down from the $13.70 high to $10.20 low might also be seen as a resistance area. On the downside, an initial support can be at $10.00, followed by the $9.40-30 area in the near term.
Hourly MACD – The MACD is about to change the slope to bearish, suggesting another downside move.
Hourly RSI – The RSI is also below the 50 level, which is a negative sign for the bulls.
Intraday Support Level – $10.00
Intraday Resistance Level – $12.50
Charts courtesy of Kraken via Trading View