- Ethereum price started a recovery against the US dollar, but finding a crucial resistance on the way up.
- Yesterday’s highlighted bearish trend line on the hourly chart (data feed via Kraken) of ETH/USD is still in play and acting as a major resistance.
- As long as the price is below the highlighted trend line resistance, it may continue to face selling pressure.
Ethereum price recovery is currently protected by a bearish trend line. Let’s see if there is a break possible in the near term or not.
Ethereum Price Resistance
Ethereum price ETH attempted once again to trade higher against the US Dollar, but failed to clear a major resistance area of $13.00-20. I have been tracking a bearish trend line on the hourly chart (data feed via Kraken) of ETH/USD for a couple of days now, and highlighted in my previous analysis as well. I think the same trend line may play a key role for the next move in ETH in the near term.
There is a chance that the ETH bulls may not be able to break it due to a couple of reasons. First, the 100 hourly simple moving average, which is just around the highlighted trend line. Second, the 61.8% Fib retracement level of the last drop from the $14.29 high to $11.15 low. As long as these hurdles are in place, the price may not be able to gain traction.
I think the chances of it breaking it very less until we see another minor dip in the ETH/USD pair. Once the pair completes a three-wave pattern, I think the possibility of it moving back higher will increase.
Hourly MACD – The MACD is moving back into the bearish zone, which is not a good sign.
Hourly RSI – The RSI is just above the 50 level, and if it moves down further, then ETH may decline towards $12.20.
Major Support Level – $12.20
Major Resistance Level – $13.00
Charts courtesy – SimpleFX