- ETH price moved further higher against the US Dollar during the past 24 hours and created a new high.
- Yesterday’s highlighted bullish trend line on the hourly chart (data feed via SimpleFX) of ETH/USD acted as a perfect buy area and produced a bounce.
- The price is now in the overbought area, and may correct lower in the near term.
Ethereum price surge is impressive against the US Dollar, but the traders need to be careful now as there is a chance of a correction.
Ethereum Price Surge
Ethereum price continued to impress, as it registered solid gains not only against the US dollar, but also against Bitcoin. There was a move above the $14.00 handle, which is a sign that the price is an uptrend. My yesterday’s idea of buying ETH worked once again. There was a bullish trend line on the hourly chart (data feed via SimpleFX) of ETH/USD, which played well and acted as a buy zone.
The price recently traded as high as $14.25, and currently correcting lower. I think there is a chance of an extension of the current correction mode. The main reason for this is because the price is an overbought region. On the downside, there is a bullish trend line formed on the same chart. The price is currently approaching it.
So, there are two scenarios possible. First, the ETH/USD pair finds buyers around the trend line support and trades higher once again. Second, the pair break the trend line support. In the second case, there is a chance of a move towards the 50% Fib retracement level of the last wave from the $12.01 low to $14.25 high.
Hourly MACD – The MACD is mostly in the bullish zone, and not showing any signs of a major correction.
Hourly RSI – The RSI is set in the overbought readings, waiting for the sellers to step in.
Major Support Level – $13.80
Major Resistance Level – $14.25
Charts courtesy – SimpleFX