- ETH price after trading as high as $11.20 against the US Dollar found sellers and corrected lower.
- There is a crucial bullish trend line formed on the hourly chart (data feed via SimpleFX) of ETH/USD, which is acting as a major support.
- The same trend line is also around the 100 hourly simple moving average, acting as a buy area.
Ethereum price is currently correcting lower and testing a major support, which must hold if ETH/USD has to remain in an uptrend.
Ethereum Price Trend Line Support
Ethereum price ETH managed to trade higher once again towards the $11.20 level where it found offers. The price is currently under a correction phase and already below the 23.6% Fib retracement level of the last wave from the $10.31 low to $11.18 high. However, there are many support zones on the downside, which must come into action to rescue ETH buyers.
Currently, a major bullish trend line is formed on the hourly chart (data feed via SimpleFX) of ETH/USD is acting as a support. However, the most important point is that the 100 hourly simple moving average is just below the trend line. Moreover, the 38.2% Fib retracement level of the last wave from the $10.31 low to $11.18 high is also around the same support area. Overall, there is a crucial support area formed near $10.90-80.
In my view, as long as the price is above the highlighted support area, it may bounce once again. A break below the same may be a bad news for the ETH buyers. In that situation, there is even a chance of a double top pattern emerging around the $11.20 level.
Hourly MACD – The MACD has moved into the bearish zone, but lacking momentum.
Hourly RSI – The RSI is also below the 50 level, which is not a good sign for the ETH.
Major Support Level – $10.80
Major Resistance Level – $11.20
Charts courtesy – SimpleFX