Key Highlights
- Ethereum price after moving a few points higher found sellers and moved down as forecasted in yesterday’s post.
- Yesterday’s highlighted bearish trend line on the hourly chart (data feed via Kraken) acted as a perfect sell area and pushed the price down.
- The price has moved down, and it’s time to take profit so that we can wait for the next opportunity.
Ethereum price spiked higher yesterday. However, the price found sellers around a perfect sell zone and moved down once again.
Ethereum Price – Wait for another rally?
Ethereum price after moving down towards $8.50 managed to gain bids and traded back higher. However, I highlighted in yesterday’s post that if the price jumps higher, then we can consider selling near a bearish trend line formed on the hourly chart (data feed via Kraken). The highlighted trend line and resistance area acted as a perfect hurdle for the bulls and pushed the price back down.
The price touched the trend line and resistance and tested the 61.8% Fib retracement level of the last drop from the $11.98 high to $8.48 low. One important bearish sign to consider as of writing is the fact that the price is now back below the 100 simple moving average (hourly chart, data feed via Kraken).
On the upside, an initial resistance can now be around the 100 MA, coinciding with the 50% Fib retracement level of the last drop from the $11.98 high to $8.48 low. A break above it could take the price once again towards the highlighted trend line and resistance area where sells can be considered. On the downside, the most important support can be at $9.20-00.
Hourly MACD – The MACD is heading towards the bearish slope, which is a concern for the bulls.
Hourly RSI – The RSI is below the 50 level, which is a negative sign.
Intraday Support Level – $9.20
Intraday Resistance Level – $10.60
Charts courtesy of Kraken via Trading View
