- Ethereum price continued to find bids near the 100 hourly simple moving average, but it may weaken in the short term vs the US Dollar.
- There was a bullish trend line formed on the hourly chart (data feed via Kraken) of ETH/USD, which is almost broken by the sellers.
- If there is an hourly close below the 100 SMA, then there is a chance of a downside move towards $9.00.
Ethereum price looks like setting up for a minor downside move. A break and close below the 100 hourly SMA may ignite a reaction.
Ethereum Price – Move towards $9.00 possible?
Ethereum price ETH corrected in two waves recently after making a minor top near $10.44. It moved down on a couple of occasions, but the 100 hourly simple moving average managed to prevent a downside move. However, the current price action suggests that there is a chance of ETH breaking the 100 hourly SMA in the short term.
There was a bullish trend line formed on the hourly chart (data feed via Kraken) of ETH/USD, which is almost breached. If there is an hourly close below the 100 SMA, then we can witness more losses. The price is currently below the 38.2% Fib retracement level of the last wave from the $8.40 low to $10.0 high. So, there is a possibility of a move towards the 61.8% Fib retracement level of the same wave, which is at $9.02.
If you are looking to sell, then plan only a short-term trade with an hourly close below the 100 SMA and a very tight stop targeting the $9.0 support area.
Hourly MACD – The MACD is in the bearish slope, which is a bearish sign in the short term.
Hourly RSI – The RSI is well below the 50 level, pointing that the ETH bulls are struggling to gain pace.
Intraday Support Level – $9.00
Intraday Resistance Level – $9.50
Charts courtesy of Kraken via Trading View