Key Highlights
- ETH price started a nice upside recovery and moved above the $710 resistance against the US Dollar.
- There is a key bullish trend line with support at $710 forming on the hourly chart of ETH/USD (data feed via Kraken).
- The pair is currently correcting lower, but it remains supported near $705, $710 and the 100 hourly simple moving average.
Ethereum price is recovering against the US Dollar and Bitcoin. ETH/USD is now trading above the 100 hourly SMA and $705, which is a positive sign.
Ethereum Price Decline
After a major decline this past week, ETH price was able to hold the $635 support zone against the US Dollar. The price traded as low as $637.88 and started an upside move. It climbed higher and broke the $660 and $680 resistance levels. Buyers were even able to push the price back above the $700-705 resistance and the 100 hourly simple moving average.
These all are positive signs and suggests that the price recovered nicely from the $637.88 low. It traded as high as $740.67 and is currently correcting lower. It is about to test the 23.6% Fib retracement level of the last wave from the $737 low to $740 high. However, there are many supports on the downside near the $705-710 zone. There is also a key bullish trend line with support at $710 forming on the hourly chart of ETH/USD. Moreover, the 100 hourly SMA is positioned near the $706 level to prevent declines. Lastly, the 38.2% Fib retracement level of the last wave from the $737 low to $740 high is at $701 to act as a support.
Looking at the chart, the price remains supported on the downside above $702. As long as the price is above $700 and the 100 hourly SMA, it may bounce back and recover further.
Hourly MACD – The MACD is slowly moving in the bearish zone.
Hourly RSI – The RSI is moving lower towards the 50 level.
Major Support Level – $705
Major Resistance Level – $740
