- Ethereum price tested an important support area of $7.00 as forecasted yesterday, where it found buyers.
- There is a bearish trend line formed on the hourly chart (data feed via Kraken) of ETH/USD, which the bulls are attempting to break.
- A beak above the trend line resistance may open the doors for a move towards the $9.50 level.
Ethereum price traded down near $7.0 where buyers appeared. Currently, it looks like there is a chance of ETH/USD breaking higher in the short term.
Ethereum Price Buy with a break?
Ethereum price ETH made a perfect bottom near $7.0. I highlighted in yesterday’s analysis that there is a chance of ETH/USD moving down towards $7.0, which can then produce a bounce. The price did test the mentioned level and moved higher later. There was a nice upside reaction, signaling more gains in the near term.
ETH/USD is currently attempting to break a bearish trend line on the hourly chart (data feed via Kraken), which is also coinciding with the 100 hourly simple moving average. If Ethereum price moves above the trend line resistance, then there is a real possibility of it gaining traction for a run towards the next resistance area of $9.50. Buying with a break above the trend line resistance may be considered with a stop of a close back below the 100 SMA.
On the downside, the 38.2% Fibonacci retracement level of the last leg from the $7.0 low to $8.74 high can act as a support area. Any further losses may push the price back towards the 50% Fib retracement level of the same wave.
Overall, the bullish sentiment prevails Intraday.
Hourly MACD – The MACD may change the slope to bullish, suggesting an upside break
Hourly RSI – The RSI is above the 50 level, which is a positive sign for the bulls.
Intraday Support Level – $8.00
Intraday Resistance Level – $8.75
Charts courtesy of Kraken via Trading View