- Ethereum price continued to trade down and even broke this week’s low to test the $9.90 area.
- My idea of selling for the last two times worked perfectly, as the highlighted resistance area near the 100 hourly simple moving average played well.
- Yesterday’s highlighted bearish trend line on the hourly chart (data feed via Kraken) of ETH/USD is still in play and may continue to act as a hurdle for the bulls.
Ethereum price traded further down and broke yesterday’s low. Can losses extend or ETH/USD could manage to correct higher in the short term?
Ethereum Price Sell Target Achieved
Ethereum price ETH was under a lot of bearish pressure intraday against the US Dollar, and my suggested idea of selling near the 100 hourly simple moving average worked well. The target of $10.40 was achieved, and the price event broke the swing low of $10.00 to form a new low of $9.89.
The price is currently consolidating in a tiny range and facing sellers near the 23.6% Fib retracement level of the last drop from the $11.65 high to $9.89 low. There is a chance of the price moving above the stated fib level since the current conditions are oversold. However, the next resistance on the upside could be around the 38.2% Fib retracement level of the last drop from the $11.65 high to $9.89 low.
The most important resistance lies near yesterday’s highlighted confluence resistance of a bearish trend line on the hourly chart (data feed via Kraken) and the 100 hourly simple moving average. In short, there is a chance of a minor recovery in ETH/USD, but the $10.50-70 resistance area may stall the upside move.
Hourly MACD – The MACD may change the slope to the bullish area, signaling for a short-term correction.
Hourly RSI – The RSI is well below the 50 level, pointing towards the seller’s strength.
Intraday Support Level – $10.00
Intraday Resistance Level – $10.50
Charts courtesy of Kraken via Trading View