- I highlighted that $11.00 represents a major resistance area for Ethereum price, but the bulls managed to break it.
- The price also moved above the upper bearish trend line of the descending channel pattern formed on the hourly chart (data feed via Kraken) of ETH/USD.
- Buying dips may be considered in the short term as long as the price is above the 100 hourly simple moving average.
Ethereum price moved into the bullish zone and settled above $11.00. Buying may be considered in the short term. See how.
Ethereum Price – Buy Dips?
Ethereum price spiked higher intraday and also managed to clear a major resistance area of $11.00, as highlighted in yesterday’s post. The most important bullish sign is that ETH/USD settled above the upper bearish trend line of the descending channel pattern formed on the hourly chart (data feed via Kraken).
Moreover, the move was so impressive that the price closed above the 100 hourly simple moving average. All in all the price closed in a bullish territory, and may continue to trade higher. Now, what can we witness from the current levels.
There is a chance of a minor correction from the current levels, which can be seen as a buying opportunity. The most important support and buy zone can be around the 50% Fib retracement level of the last move from the $10.10 low to $11.83 high, as the 100 hourly simple moving average is also positioned near it. If you enter a buy trade near $10.90, then make sure you have a stop of an hourly close below the 100 hourly SMA.
On the upside, the next resistance above $11.00 may be near $12.20.
Hourly MACD – The MACD has moved to the bearish zone, calling for a correction.
Hourly RSI – The RSI is above the 50 level, which is a positive sign for the bulls.
Intraday Support Level – $10.90
Intraday Resistance Level – $11.85
Charts courtesy of Kraken via Trading View