- Ethereum price managed to trade higher once again after a minor dip, but failed to clear the $11.80 resistance area.
- There were a couple of attempts to break the stated level, but the bears managed to defend it successfully.
- There is a bullish trend line formed on the hourly chart (data feed via Kraken) of ETH/USD, which is almost broken and may clear the way for a slight decline.
Ethereum price successfully completed another wave higher. However, the price is struggling to clear $11.80. Can ETH/USD break it or will the price move down?
Ethereum Price – Short Term Downside?
Yesterday, I highlighted that a short term buying dips idea may work well. Ethereum price did move down a few points to provide an opportunity to enter a long, and then ETH moved back higher. However, the bulls failed to break the last high near $11.80, as it acted as a major barrier and prevented any further gains.
Currently, the price is attempting to break a bullish trend line formed on the hourly chart (data feed via Kraken) of ETH/USD. If sellers succeed in closing the price below the trend line support area, then there is a chance of ETH moving towards the 38.2% Fib retracement level of the last move from the $10.10 low to $11.83 high.
The $11.20-10 support area holds a lot of importance for ETH/USD in the short term, as the 100 hourly simple moving average is positioned near it. So, it you are planning to enter a short term sell, then your TP should be above $11.20 and SL near $11.90.
Hourly MACD – The MACD is in the bearish zone, and suggesting more losses in the near term.
Hourly RSI – The RSI has just moved below the 50 level, which is a warning sign for the bulls.
Intraday Support Level – $11.20
Intraday Resistance Level – $11.80
Charts courtesy of Kraken via Trading View