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Ethereum Price Technical Analysis – Perfect Trend Line Support Bounce

Avatar Aayush Jindal 4 years ago

Key Highlights

  • Ethereum price spiked higher vs the US Dollar intraday and appreciated by more than 10%.
  • Yesterday’s bullish trend line on the hourly chart (data feed via Kraken) of ETH/USD played well, as the price bounced perfectly after testing it.
  • There is a chance of a minor correction from the current levels, which can be seen as a buying opportunity.

Ethereum price traded above the $11.00 handle vs the USD, and it looks like there are more upsides left in ETH/USD in the near term.

Ethereum Price – Buying Dips?

Ethereum price ETH as mentioned bounced during the past couple of sessions vs the US Dollar and traded above the $11.00 level. There was a lot of buying interest noted for ETH, which may continue in the near term. Yesterday, I highlighted a bullish trend line on the hourly chart (data feed via Kraken) of ETH/USD. It played well and helped the bulls to gain bids.

As soon as the price settled above the 100 hourly simple moving average, there was a sharp upside move. Moving ahead, there are many signs on the hourly MACD and RSI of a correction in the short term. So, the price may move down a few points before it can continue trading higher. On the downside, an immediate support lies at 23.6% Fib retracement level of the last wave from the $10.00 low to $11.40 high.

Ethereum Price Technical Analysis

However, if the correction is extended, then a move towards the 50% Fib retracement level of the last wave from the $10.00 low to $11.40 high is also possible, which can act as a major support area for ETH/USD.

Hourly MACD – The MACD is in the about to change the slope to bearish, calling for a correction.

Hourly RSI – The RSI is around the overbought levels, which means there is a chance of it moving down.

Intraday Support Level – $11.00

Intraday Resistance Level – $11.40


Charts courtesy of Kraken via Trading View

Image: NewsBTC

Aayush Jindal

Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis, and has spent over a DECADE as a financial...

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