- ETH price managed to correct a few points higher during the past few hours against the US Dollar.
- Yesterday’s highlighted bearish trend line on the hourly chart (data feed via SimpleFX) of ETH/USD is still active on the upside to stop any further gains.
- The price may be recovering in the short term, but it’s hard to call the current wave as a real recovery.
Ethereum price started a recovery from the $11.00 low against the US dollar, but it is eventually moving towards a crucial resistance area.
Ethereum Price Resistance
ETH price looks like started a recovery against the US Dollar yesterday after trading as low as $10.97. The price moved above the 38.2% Fib retracement level of the last leg from the $11.86 high to $10.97 low. It opened the doors for further gains. However, the rally failed near a major technical level. The $11.60 level acted as a real resistance and prevented any further gains.
Moreover, the 61.8% Fib retracement level of the last leg from the $11.86 high to $10.97 low also acted as a barrier and stopped the upside move. We must also not ignore yesterday’s highlighted bearish trend line on the hourly chart (data feed via SimpleFX) of ETH/USD. It is still active and valid on the upside. If the price attempts to move higher one more time, then the highlighted trend line resistance may prevent gains.
I think the price may dip one more time to complete the wave structure before we can witness a higher high. On the downside, the most important support is at $11.00, which may continue to prevent any major losses.
Hourly MACD – The MACD has slowly moved away from the bearish zone, which is a positive sign.
Hourly RSI – The RSI attempt to close above the 50 level failed, and it is now back testing the 40 level.
Major Support Level – $11.20
Major Resistance Level – $11.60
Charts courtesy – SimpleFX