- Ethereum price after trading as low as $8.40 started to gain bids vs the US Dollar.
- ETH/USD is making an attempt to trade higher, but may face sellers near a bearish trend line formed on the hourly chart (data feed via Kraken).
- A break above the trend line and resistance area could take the price towards the last swing high of $10.40.
Ethereum price looks hesitant, but if the ETH/USD bulls manage to gain strength, then a move towards $10.40 is possible in the near term.
Ethereum Price – Buy with a break?
Ethereum price ETH traded down from $10.40 to $8.40 recently, and then started to consolidate losses. The price is currently moving higher, and may be heading towards a major resistance area in the form of a bearish trend line formed on the hourly chart (data feed via Kraken) of ETH/USD. The highlighted trend line resistance area acted as a hurdle for the ETH bulls earlier and might stall gains one more time.
However, there is one positive to note, which is the fact that the price is currently above the 100 hourly simple moving average. There is a chance that the ETH bulls may push the price above the highlighted trend line resistance area. In that situation, the price could easily test the last swing high of $10.40.
ETH/USD needs to clear the 61.8% Fibonacci retracement level of the last drop from the $10.40 high to $8.40 in order to gain strength. One may consider buying with a break above the highlighted trend line resistance with a stop of an hourly close below the 100 SMA.
Hourly MACD – The MACD looks is in the bullish slope, calling for an upside move.
Hourly RSI – The RSI is well above the 50 level, which is a bullish sign in the short term.
Intraday Support Level – $9.20
Intraday Resistance Level – $9.70
Charts courtesy of Kraken via Trading View
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