- ETH price after a long struggle finally managed to trade a few points higher against the US Dollar and Bitcoin.
- This week’s highlighted bearish trend lines on the hourly chart (data feed via SimpleFX) of ETH/USD were broken to clear the upside move.
- The price traded near $8.50 where it found sellers and currently correcting lower.
Ethereum price managed to move higher against the USD and BTC. Can this move in ETH/USD be considered as a positive sign in the short term?
Ethereum Price Short-term Break
ETH price after a continuous decline against the US Dollar managed to gain bids near the $7.60 area. The price recovered well and broke a couple of important resistance levels. First, the 50% Fib retracement level of the decline from the $9.00 high to $7.61 low was broken. It is a good sign in the short term, but the bulls now need to gain momentum or the price may move down once again.
The most important thing was a break above this week’s highlighted bearish trend lines on the hourly chart (data feed via SimpleFX) of ETH/USD. These two trend lines were acting as a major resistance for an upside move. A break above these is also a good sign. The price traded as high as $8.51, and currently correcting lower. It has moved below the 23.6% Fib retracement level of the last wave from the $7.61 low to $8.51 high. So, there is a chance of further declines before the buyers appear again.
The most important support could be near the broken trend line and the 50% Fib retracement level of the last wave from the $7.61 low to $8.51 high at $8.00.
Hourly MACD – The MACD has moved away from the bearish slope, which is a positive sign.
Hourly RSI – The RSI is above the 50 level, bus struggling to hold it.
Major Support Level – $8.00
Major Resistance Level – $8.50
Charts courtesy – SimpleFX