- Ethereum price dived this past week and surprised many traders with the fall from $15.00 to $9.0.
- However, the price found support near a major support area of $8-8.50 and started to move back higher.
- There is a bearish trend line formed on the 4-hours chart of Ethereum price (data feed via Kraken), which may act as a resistance if the price moves higher.
Ethereum price managed to recover after heavy losses. The question now is whether recovery can continue? Can you plan to sell?
Ethereum Price – Sell as long as below 100 SMA
Ethereum price dived sharply this past and trimmed more than 30% of gains to trade below the $10.00 support area. However, there was a major support area at $8.50-8.00, which managed to prevent any further losses. The price started a recovery and traded above the 23.6% Fib retracement level of the last drop from the $15.00 high to $8.09 low. This is a positive sign for the bulls in the near term, but cannot be seen as a change in the trend.
There is a bearish trend line formed on the 4-hours chart of Ethereum price (data feed via Kraken), which may be seen as a major resistance zone if the price continues to trade higher from the current levels. The most important point is that the price is currently facing offers near the 100 simple moving average (4-hours chart, data feed via Kraken). Moreover, the 38.2% Fib retracement level of the last drop from the $15.00 high to $8.09 low is also playing its part well.
In short, as long as the price is below the 100 SMA, and the trend line resistance it remains at a risk of another down move. A break above it may call for a change of trend to bullish.
4-hours MACD – The MACD may move to bullish slope, which is a positive sign.
4-hours RSI – The RSI is below the 50 level, suggesting sellers are in control.
Intraday Support Level – $8.50
Intraday Resistance Level – $11.50
Charts courtesy of Kraken via Trading View