- Ethereum price created a new weekly low as forecasted in my yesterday’s technical analysis post.
- The highlighted bearish trend line on the hourly chart (data feed via Kraken) of ETH/USD continued to act as a barrier for the bulls and pushed the price down.
- It looks like the price may spike down one more time to test the $8.10-00 support area where the bulls may take a stand.
Ethereum price moved down as forecasted to create a new low. It looks like one more push down is possible as long as the trend line resistance holds.
Ethereum Price – Test of $8.10?
Ethereum price ETH continued to struggle and my view of it moving down further paid well. I think it’s time to book profits if you are trading conservative. For aggressive traders, I suggest to move the stop to break even and wait for a final downside thrust. There is a high probability of ETH/USD moving down further, and testing the $8.20-10 support area where buyers may appear.
On the upside, yesterday’s highlighted bearish trend line on the hourly chart (data feed via Kraken) of ETH/USD may continue to act as a resistance. Moreover, the 100 hourly simple moving average is also positioned just above it to increase the importance of resistance zone. Last but not the least the 38.2% Fib retracement level of the last drop from the $9.20 high to $8.35 low is just below the trend line resistance to act as a barrier for more gains.
Selling close to the trend line resistance area may be opted with a stop as an hourly close above the 100 SMA or above the highlighted trend line.
Hourly MACD – The MACD is almost flat, signaling a minor consolidation before the next move.
Hourly RSI – The RSI is below the 50 level, calling for more losses in the near term.
Intraday Support Level – $8.20
Intraday Resistance Level – $8.80
Charts courtesy of Kraken via Trading View