- ETH price surged higher against the US dollar, and broke many resistances on the way up.
- Yesterday’s highlighted minor bearish trend line on the hourly chart (data feed via SimpleFX) of ETH/USD was broken to ignite more gains.
- The price rocketed higher, and traded above the $7.20 resistance area.
Ethereum price gained heavy bids during the past few hours and traded above the $7.20 resistance. More gains are possible in ETH/USD going forward.
Ethereum Price Rise
I highlighted an important resistance area in ETH price against the US Dollar near $7.20. There was also a strong support at $6.90-7.00. The price failed to go through the stated support area, and gained heavy bids. As a result, there was an upside move. During the rise, the ETH/USD pair broke a couple of important resistances. First, the 50% Fib retracement level of the last decline from the $7.19 high to $6.87 low was cleared.
Second, the 100 hourly simple moving average. Third, yesterday’s highlighted minor bearish trend line on the hourly chart (data feed via SimpleFX) of ETH/USD was broken. Lastly, the price moved above the $7.20 and $7.60 resistance levels. Overall, the trend is positive, as the price traded as high as $8.00. The price is currently correcting lower, and about to approach the 23.6% Fib retracement level of the last wave from the $6.87 low to $8.003 high.
No doubt, the price is now in the positive territory and positioned for more gains. One may now consider buying dips in the short term, as the price is bullish. However, we need not to get too aggressive at the moment, as there is a risk of a pullback before there can be additional gains.
Hourly MACD – The MACD is now strongly in the bullish slope.
Hourly RSI – The RSI is in the overbought levels, calling for a correction.
Major Support Level – $7.70
Major Resistance Level – $8.00
Charts courtesy – SimpleFX