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Key Highlights
- Ethereum price managed to pop higher once again and traded above a major resistance area.
- There was a crucial bearish trend line formed on the 4-hours chart (data feed via Kraken) of ETH/USD, which was broken recently by ETH bulls.
- The price is still below the 100 simple moving average (H4 chart), and currently struggling to break it.
Ethereum price may gain further in the short term. ETH bulls have to break the 100 SMA resistance area for a move towards $10.50.
Ethereum Price – Buy With a Break?
Ethereum price ETH gained traction recently against the US Dollar and managed to climb above a major resistance area of $8.50. During the upside move, ETH/USD also broke a bearish trend line on the 4-hours chart (data feed via Kraken) to set the pace for more gains. However, the upside was stalled near the 100 simple moving average (H4 chart), which is currently acting as a barrier and preventing gains.
If the price has to gain more strength, then ETH bulls have to break the 100 SMA resistance area, as it holds a lot of importance in the near term. The 61.8% Fib retracement level of the last drop from the $11.10 high to $7.00 low is also around the 100 SMA. So, a break above it is needed for more upsides.
One may consider buying Ethereums if the bulls succeed in taking the price above the 100 SMA. Stop should be very tight and traders must see if it’s not a false break. On the upside, the next target could be around $10.50. A failure to break the 100 SMA may push the price down.
4-hours MACD – The MACD is strongly placed in the bullish area, calling for more upsides.
4-hours RSI – The RSI is around the overbought levels, which may ignite a corrective rally in ETH/USD.
Intraday Support Level – $8.80
Intraday Resistance Level – $9.60
Charts courtesy of Kraken via Trading View
