- Ethereum price started to recover after trading as low as $10.02, but facing sellers near the 100 hourly simple moving average.
- There is a bearish trend line formed on the hourly chart (data feed via Kraken) of ETH/USD as well, which is near the 100 SMA to increase the importance of resistance.
- If the trend line resistance and 100 SMA holds, a move down once more is possible
Ethereum price managed to gain a few points, but struggled to break 100 SMA. Can the bulls manage to break it and take ETH/USD higher?
Ethereum Price Confluence Resistance Area
Ethereum price ETH showed a few positive signs during the past couple of sessions, but ETH bulls faced a tough time to break a confluence resistance area near $11.00-10. There is a bearish trend line formed on the hourly chart (data feed via Kraken), which is positioned with the 100 hourly simple moving average to form a confluence area.
ETH/USD attempted on a couple of times to break the highlighted confluence resistance area, but failed to break the same. Moreover, the price also failed near the 61.8% Fib retracement level of the last drop from the $11.65 high to $10.02 low. As long as the price is below the confluence resistance area, it won’t be easy for the bulls to take ETH higher.
One may consider selling in the short term, but with caution and a stop of an hourly close above the 100 SMA. On the downside, the $10.40 level can act as an initial support followed by the $10.20 area.
Hourly MACD – The MACD just entered the bearish zone, which is not a good sign for the ETH bulls.
Hourly RSI – The RSI is a point below the 50 level, calling for a short-term downside move.
Intraday Support Level – $10.40
Intraday Resistance Level – $11.00
Charts courtesy of Kraken via Trading View