- Ethereum price weakened further and moved down against the US Dollar to trade near $10.00.
- I highlighted a resistance zone yesterday, which played well and ignited further losses in ETH.
- There is now a bearish trend line formed on the hourly chart (data feed via Kraken) of ETH/USD, which is acting as a resistance.
Ethereum price faced a lot of selling pressure and moved down. However, the $10.00 support area holds the key and may produce a bounce.
Ethereum Price – Trend line break possible?
As mentioned, Ethereum price failed to recover yesterday, and continued to move down against the US Dollar. A new weekly low of $10.00 was formed, which provided support to ETH/USD. The price is currently making an attempt to trade higher, but facing resistance near a bearish trend line formed on the hourly chart (data feed via Kraken).
However, ETH has already moved above the 23.6% Fib retracement level of the last leg from the $11.90 high to $10.00 low. So, there is a chance that the price may break the highlighted trend line and resistance area for a short-term recovery. The next stop after the break might be near the 100 hourly simple moving average, which is sitting near the 61.8% Fib retracement level of the last leg from the $11.90 high to $10.00 low.
If the price fails to move above the trend line and resistance area, then a move back towards the $10.00 support is possible in the near term. Selling near the trend line and resistance area can be considered as long as the price is below it. A stop should be an hourly close above the highlighted resistance area.
Hourly MACD – The MACD may change the slope to the bullish zone, which is a sign of a minor recovery.
Hourly RSI – The RSI is below the 50 levels, suggesting that the bulls are struggling.
Intraday Support Level – $10.00
Intraday Resistance Level – $10.60
Charts courtesy of Kraken via Trading View