- Ethereum price traded lower against the US Dollar this past week, but remained above a major support.
- There is a crucial bullish trend line formed on the 4-hours chart of ETH/USD (data feed via SimpleFX), which is acting as a support area.
- As long as the price is above the trend line support, there is a chance of an upside move.
Ethereum price weakened this past week versus the US dollar, and currently waiting for ETH/USD buyers to step in for a recovery.
Ethereum Price Correction
Ethereum price ETH was seen struggling throughout this past week against the US Dollar and Bitcoin. There was a sharp downside move towards the $12.00 handle. Somehow the buyers managed to protect the downside, but the price remains at a risk. The price is currently supported on the downside, but soon buyers need to step in and push the price higher. Else, there is a risk of a downside break in the near term.
On the downside, there is a major support area in the form of a bullish trend line on the 4-hours chart of ETH/USD (data feed via SimpleFX). The highlighted trend line acted as a support on many occasions, and holds a lot of value. We need to see how long the price can stay above it. The price is also just above the 100 simple moving average on the same chart, which is a slight positive sign and must encourage bulls.
On the upside, the 38.2% Fib retracement level of the last drop from the $12.75 high to $11.74 low is currently acting as a resistance. A break above the same fib level may call for an upside push towards the $12.35 zone.
4-hours MACD – The MACD is almost flat, but attempting to move higher.
4-hours RSI – The RSI is just above the 50 level, and waiting for the bulls to take control.
Major Support Level – $12.00
Major Resistance Level – $12.12
Charts courtesy – SimpleFX