Key Highlights
- ETH price surged higher versus the US Dollar and posted a solid move above the $12.00 handle.
- Yesterday’s highlighted bearish trend line on the hourly chart (data feed via SimpleFX) of ETH/USD was broken for an upside move.
- The ETH bulls managed to gain control, and took the price higher towards $12.75.
Ethereum price is back in action, as there was a nice upside move in ETH/USD. More gains are likely moving ahead as the resistance is now support.
Ethereum Price Bounce
Yesterday, I stated that the ETH buyers need an encouragement for an upside move. Ethereum price did move higher, as the buyers managed to gain strength. There was a good upside reaction, and the price cleared a couple of important resistance levels. The first one was yesterday’s highlighted bearish trend line on the hourly chart (data feed via SimpleFX) of ETH/USD.
Second, the $12.00 handle was cleared during the upside move to signal more gains. Lastly, there was a close above the 100 hourly simple moving average as well. After the highlighted break, the price traded as high as $1275 where sellers appeared and prevented any further gains. The price is currently correcting lower, and moved below the 23.6% Fib retracement level of the last leg from the $11.69 low to $12.75 high. However, it looks like the pair may correct further before it can gain bids on the downside.
The next important support is near the 50% Fib retracement level of the last leg from the $11.69 low to $12.75 high. If the pair continues to move down, then the broken resistance trend line may come into action. It might now act as a support and prevent a downside move.
Hourly MACD – The MACD is placed in the bullish zone, but slowly losing the grip.
Hourly RSI – The RSI is currently above the 50 level, which is a good sign for buyers.
Major Support Level – $12.00
Major Resistance Level – $12.60
Charts courtesy – SimpleFX