Key Highlights
- Ethereum price moved down just as I thought against the US Dollar and traded close to the last swing low.
- Yesterday’s highlighted bullish trend line on the hourly chart (data feed via Kraken) of ETH/USD was broken during the downside move.
- As suggested in the last post if you entered a sell trade with a break, then it’s time to book profits if not already.
Ethereum price moved down and broke a support area. ETH/USD may trade a few points higher from here, but may face sellers.
Ethereum Price – Sell rallies?
Ethereum price ETH broke down yesterday against the US Dollar, and cleared a couple of important support levels. It also broke yesterday’s highlighted bullish trend line on the hourly chart (data feed via Kraken) of ETH/USD. I suggested a sell trade with a break yesterday, and if you entered, then it’s time to book profits if not already. No doubt, the price is under a bearish pressure and may continue to trade down.
However, we need to wait for a correction to enter a sell trade. There is now a bearish trend line on the hourly chart, which may act as a resistance if ETH corrects higher from the current levels. Yesterday, the 100 hourly simple moving average acted as a perfect barrier, and now the same is aligned with the highlighted bearish trend line.
So, if the price moves higher from the current levels, then there is a chance of it finding offers near the highlighted trend line and resistance area. One may consider selling near it with a stop of an hourly close above 100 SMA.
Hourly MACD – The MACD is about to move in the bearish zone, calling for more losses.
Hourly RSI – The RSI is also below the 50 level, which is a bearish sign in the short term.
Intraday Support Level – $7.20
Intraday Resistance Level – $7.50
Charts courtesy of Kraken via Trading View
