- Ethereum price after correcting for the past couple of days finally moved higher and showing a lot of bullish signs, plus my play of buying with a break worked.
- There was a bearish trend line formed on the hourly chart (data feed via Kraken), which was broken to clear the way for more gains.
- It looks like the bulls are back and may take the price higher if the price manages to close above the $12.00 resistance area.
Ethereum price moved above a major resistance area intraday. Buying dips may be a good option in the short term as long as it is above $10.50.
Ethereum Price – Buy Near 100 SMA
Yesterday, I stated that if Ethereum price manages to close above the 100 simple moving average (hourly, data feed via Kraken), then we can consider a buy trade. The idea worked perfectly, as there was a break and close above the stated MA and there was a nice upside move. The price traded as high as $12.00, where it found sellers and moving ahead may correct a few points in the near term.
The most important point is the fact that the price also broke a bearish trend line formed on the hourly chart (data feed via Kraken), as highlighted in yesterday’s post. Now what? We may wait for the price to correct lower in the short term towards the 38.2% Fib retracement level of the last leg from the $8.00 low to $12.00 high.
The $10.50 support area holds a lot of importance as the stated Fib retracement level and the 100 SMA is positioned near it. So, there may be solid buying interest around $10.50, and we might consider buying.
Hourly MACD – The MACD is heading towards the bearish area, calling for a minor correction.
Hourly RSI – The RSI is around the overbought levels, again suggesting a minor correction.
Intraday Support Level – $10.50
Intraday Resistance Level – $12.00
Charts courtesy of Kraken via Trading View