- ETH price after moving towards the $11.20 level against the US dollar found resistance.
- The price moved down, and broke a bullish trend line on the hourly chart of ETH/USD (data feed via SimpleFX) at $11.10.
- However, there was no major downside move, as the price continues to consolidate above the $11.00 support.
Ethereum price started a consolidation phase against the US Dollar with resistance at $11.20, and ETH/USD might be preparing for a ride soon.
Ethereum Price Consolidation
After a nasty decline towards $10.25, ETH price recovered well against the US Dollar. It moved back above the $11.00 resistance, which is now acting as a support for buyers. The price recently traded as high as $11.21 where it found resistance and moved down. However, the downside move was not strong with support at $11.00. During the downside move, the price broke a bullish trend line on the hourly chart of ETH/USD (data feed via SimpleFX) at $11.10.
This is not a good signal, but since there was no major decline, it can be ignored. The price later started consolidating in a range above the $11.00 support. On the upside, the $11.20 level is acting as a resistance, and preventing gains. There were many rejections near the highlighted resistance. On the other hand, the $11.00 is very important. It also coincides with the 100 hourly simple moving average at $10.98.
Moreover, the 23.6% Fib retracement level of the last wave from the $10.24 low to $11.21 high is also around the same support area. So, we can call the $11.00-10.95 area a crucial support zone. A break below it could take the price towards the $10.80 level. On the upside, the next resistance is at $11.40.
Hourly MACD – The MACD is almost flat, suggesting a range trading.
Hourly RSI – The RSI is above the 50 level, but there is no solid positive sign yet.
Major Support Level – $11.00
Major Resistance Level – $11.20
Charts courtesy – SimpleFX