- ETH price after a strong downside move towards the $10.25 level against the US Dollar recovered.
- There is a connecting bearish trend line formed on the 4-hours chart (data feed via SimpleFX) of ETH/USD, which is currently acting as a resistance near $11.20.
- On the downside, the $11.00 may act as a support area just above the $10.80 level.
Ethereum price recovered well from the PBOC decline against the US Dollar, and now ETH/USD is looking to extend gains in the short term.
Ethereum Price Resistance
This past week, we saw some swing moves in Ethereum price against the US Dollar, as the price moved down sharply towards $10.25. It was due to two major Bitcoin exchanging suspending withdrawals. It resulted in a lot of bearish pressure on Bitcoin and ETH price. The price nosedived below the $10.50 support and traded as low as $10.24. Later, the price found support near $10.25 and started a recovery.
A recovery wave was started, as the price moved above the 50% fib retracement level of the last decline from the $11.42 high to $10.24 low. This ignited a corrective rally above the $11.00 level, and traded with a positive tone. During the recent wave the price traded as high as $11.22, where it found resistance. There is a connecting bearish trend line formed on the 4-hours chart (data feed via SimpleFX) of ETH/USD. It is acting as a resistance near $11.20, and preventing an upside break.
There is a chance of a minor dip in ETH price before the price moves higher above $11.20. An initial support is at the 23.6% fib retracement level of the last wave from the $11.24 low to $11.22 high at $10.99.
4-hours MACD – The MACD is now back in the bullish zone, which is a positive sign.
4-hours RSI – The RSI is stable above the 50 level.
Major Support Level – $11.00
Major Resistance Level – $11.25
Charts courtesy – SimpleFX