- ETH price after surging above the $12.00 handle against the US Dollar found sellers and moved down.
- There is a minor bullish trend line formed on the hourly chart (data feed via SimpleFX) of ETH/USD, which is currently acting as a support.
- The pair may either bounce or break the trend line for further declines.
Ethereum price after trading higher started a move lower against the US Dollar. Is this a correction or the price made a top?
Ethereum Price Correction
Ethereum price has enjoyed a decent upside ride against the US Dollar recently to trade as high as $12.12. However, the upside was limited and the price moved down once again. The downside move was sharp, as the price broke the 50% Fib retracement level of the last wave from the $11.15 low to $12.12 high. However, the price found support around the 100 hourly simple moving average, which holds a lot of importance in the near term.
Moreover, there is a minor bullish trend line formed on the hourly chart (data feed via SimpleFX) of ETH/USD. And, the 61.8% Fib retracement level of the last wave from the $11.15 low to $12.12 high is also around the trend line support. So, overall there is a major support forming near $11.50. As long as the price is above it, there is a chance of a bounce back.
We need to see if the Ether buyers can step in or not. If there is an upside move, then the $11.80 can be seen as an initial resistance. Any further gains may easily push the pair towards the $12.00 handle in the near term.
Hourly MACD – The MACD is in the bearish zone, but may change the slope soon moving ahead.
Hourly RSI – The RSI is just below the 50 level, which is not a good sign.
Major Support Level – $11.50
Major Resistance Level – $11.80
Charts courtesy – SimpleFX