- Ethereum price continued to trade lower and my suggested plan of sell with a break worked perfectly.
- There was a contracting triangle pattern formed on the hourly chart (data feed via Kraken) of ETH/USD, which was broken to ignite more losses.
- The price traded as low as $11.00, and any recovery from the current levels may face sellers near $11.50.
Ethereum price weakened against the US Dollar, and moved towards $11.00. It looks like selling remains a preferred option in the short term.
Ethereum Price – Sell Rallies?
Ethereum price continued to struggle to move above the 100 hourly simple moving average, and finally moved down. There was a contracting triangle pattern formed on the hourly chart (data feed via Kraken) of ETH/USD, which was broken to clear the way for more declines.
I highlighted in yesterday’s post that selling with a break remains a good deal and it paid. The price moved down and traded towards the $11.00 support area. ETH is currently attempting to recover some ground, but already facing sellers near the 23.6% Fib retracement level of the last drop from the $12.12 high to $11.00 low. However, the most important resistance is around the 100 hourly simple moving average and the broken triangle resistance trend line at $11.50.
The stated level is also coinciding with the 50% Fib retracement level of the last drop from the $12.12 high to $11.00 low. So, we can consider selling if the price reaches or moves closer to the $11.50 resistance area with a tight stop of a close above the 100 SMA.
Hourly MACD – The MACD is about to change the slope to bullish, which is a sign of a minor recovery.
Hourly RSI – The RSI is well below the 50 levels, which is bearish sign.
Intraday Support Level – $11.00
Intraday Resistance Level – $11.50
Charts courtesy of Kraken via Trading View