- Ethereum price finally showed some positive signs this past week and managed to trade higher against the US Dollar.
- This past week’s highlighted support trend line on the daily chart (data feed via Kraken) of ETH/USD played its part well in preventing further losses.
- The price also moved above the 100-day simple moving average, which is a positive sign for the bulls.
Ethereum price managed to hold and important support area and bounced, but can it continue to gain bids in the near term?
Ethereum Price Recovery
Ethereum price ETH after weakening a lot against the US Dollar started finding buyers as a major support area on the daily chart at $9.50 acted as a barrier for sellers. Moreover, I highlighted a bullish trend line on the daily chart (data feed via Kraken) of ETH/USD this past week which also played well and stalled the downside move.
There was a solid buying interest noted around the highlighted trend line support, and as a result, there was a recovery in ETH/USD. The best part of the recovery was the fact that the price moved above the 100-day simple moving average. In short, there are a few positive signals, calling for more gains in the near term. However, at the same time, there is a concern for the ETH bulls.
On the upside, the 23.6% Fib retracement level of the last drop from the $21.20 high to $9.30 low is acting as a major hurdle and preventing any further recovery. A break and close the stated fib level is needed if the price has to stay positive and trade further higher in the near term.
Daily MACD – The MACD is in the bullish slope, which is a good sign for the bulls.
Daily RSI – The RSI is struggling to settle above the 50 level, which holds the key for the next move.
Major Support Level – $11.00
Major Resistance Level – $12.25