- Ethereum price after the continuation of a downtrend this past week formed a bottom below $8.0, and started to move higher.
- ETH/USD buyers managed to break a bearish trend line formed on the 4-hours chart (data feed via Kraken), which may now act as a support area.
- On the upside, there is still a hurdle for the buyers in the form of the 100 simple moving average on the 4-hours chart.
Ethereum price looks like broke a major resistance area. Buying dips may be favored as long as ETH/USD is above the $8.00 support area.
Ethereum Price – 100 SMA as a barrier
Ethereum price after a nasty decline against the US Dollar found support near $7.50. There was a nice upside reaction once the price gained momentum, and during the upside drift the ETH/USD managed to break a bearish trend line formed on the 4-hours chart (data feed via Kraken). It is important to note that the recent bounce came from the 76.4% Fib retracement level of the last wave from the $7.00 low to $9.67 high. So, we can say that a correction phase is likely over in ETH and it may start to trade further higher in the near term.
However, on the upside there is a major hurdle for the bulls, as the 100 simple moving average on the 4-hours chart is currently positioned at $8.66. ETH/USD has to break the MA to gain further momentum, and trade towards $9.50.
Buying dips may be considered in the short term, as the broken trend line may now act as a support area. However, we need to keep a close eye on the 100 SMA on the upside as a resistance area.
4-hours MACD – The MACD is in the bullish zone, calling for more gains.
4-hours RSI – The RSI is also above the 50 level, which is a bullish sign.
Intraday Support Level – $8.00
Intraday Resistance Level – $8.65
Charts courtesy of Kraken via Trading View