Key Highlights
- Ethereum price surged higher this past week against the US Dollar and made a high of $14.22.
- The price remains supported as there is a bullish trend line formed on the daily chart of ETH/USD (data feed via SimpleFX).
- The price may dip from the current levels, but the bulls may be able to protect the downside.
Ethereum price made a major move this past week versus the US Dollar, and it remains supported as there is a crucial support on the downside.
Ethereum Price Trend Line
Ethereum price ETH surged higher recently versus the new dollar and we even saw a new monthly high of $14.22. There was a nice upside move, and showed that the price remains in an uptrend. ETH/USD is currently correcting lower. It already broke the 23.6% Fib retracement level of the last wave from the $10.17 low to $14.21 high. So, there is a chance that the pair may trade down further from the current levels.
However, the price remains supported on the downside due to a few important reasons. First, there is a bullish trend line formed on the daily chart of ETH/USD (data feed via SimpleFX). Second, the 100-day simple moving average is on the downside to act as a support. Third, the 50% Fib retracement level of the last wave from the $10.17 low to $14.21 high is sitting near the trend line support.
So, we can say that there is a major support on the downside. I feel as long as the price is above the 100-day simple moving average one may consider buying. A stop in that scenario should be placed below the trend line support and a close.
Daily MACD – The MACD is in the bullish zone, which is a positive sign.
Daily RSI – The RSI is currently heading towards the 50 level, and suggesting the price is approaching support.
Major Support Level – $11.50
Major Resistance Level – $13.80
Charts courtesy – SimpleFX
