- Ethereum price moved further higher intraday and traded near $12.20 where it found sellers and started to move down.
- There was a bullish trend line formed on the hourly chart (data feed via Kraken), which was cleared during the downside move.
- The price is currently trading near the 100 hourly simple moving average, which can be seen as a major short term support area.
Ethereum price is currently trading near an important support area. A break below may call for more losses, else it might move back higher.
Ethereum Price – Importance of 100 SMA
Ethereum price managed to move a few more points higher intraday, and traded as high as $12.19. However, ETH failed to sustain momentum, and started to move down. During the downside move, the ETHUSD pair also broke a major support area in the form of a bullish trend line formed on the hourly chart (data feed via Kraken). This is a short-term bearish sign for the bulls, but there is another aspect.
The price is currently holding the 100 simple moving average (hourly, data feed via Kraken), and we have seen time and again that the stated MA plays a major role. As long as it holds, there is a chance of ETHUSD moving back higher in the near term. Ethereum price is also around the 23.6% Fib retracement level of the last leg from the $8.00 low to $12.19 high, which is also a support area.
A break below the 100 SMA could ignite more losses in ETH against the US Dollar. So, if you are planning to trade ETHUSD, then keep a close eye on the 100 hourly SMA.
Hourly MACD – The MACD may change the slope to the bullish area, which is a positive sign.
Hourly RSI – The RSI is below the 50 level, which means the bulls are struggling to gain control.
Intraday Support Level – $10.70
Intraday Resistance Level – $11.80
Charts courtesy of Kraken via Trading View