- ETH price remained above a major support area at $7.90 against the US Dollar.
- Yesterday’s highlighted bullish trend line on the hourly chart (data feed via SimpleFX) of ETH/USD acted as a perfect support and prevented downsides.
- The price needs to break the $8.40 resistance in order to gain traction and momentum.
Ethereum price managed to stay above a major support trend line against the US dollar. Let’s see if ETH/USD can gain further ground or not.
Ethereum Price Resistance
There was a minor downside reaction in ETH price against the US Dollar yesterday. The price was seen approaching a monster support area at $7.90-80. However, the ETH buyers managed to hold the downside at $7.95, and prevented a break. The most important point was yesterday’s highlighted bullish trend line on the hourly chart (data feed via SimpleFX) of ETH/USD.
The trend line support acted as a hurdle for sellers around $7.95-$8.00 and stopped the downside move. The price also failed to test the 38.2% Fib retracement level of the last wave from the $6.87 low to $8.40 high. Another crucial aspect was the 100 hourly simple moving average. It aligned perfectly with the trend line support and prevented a downside break.
The price is once again moving higher. However, the $8.40 resistance area is not allowing the ETH buyers to gain control. The price recently attempted an upside break at $8.40, but failed. There is also a connecting bearish trend line formed on the same chart of ETH/USD, acting as a resistance. It looks like the price may move inside a range for some time before making the next big move in the near term.
Hourly MACD – The MACD has moved from the bearish to bullish slope, but there is a loss in momentum.
Hourly RSI – The RSI is above the 50 level, which is a positive sign.
Major Support Level – $7.95
Major Resistance Level – $8.40
Charts courtesy – SimpleFX