Key Highlights
- ETH price gained bids once again on the downside against the US Dollar and Bitcoin, and currently moving higher.
- The ETH/USD pair is currently attempting to break a bearish trend line formed on the hourly chart (data feed via SimpleFX).
- The ETH bulls are struggling to gain momentum, and I think they need encouragement for a push higher.
Ethereum price is trading higher, but remains below a major resistance. A move above $12.00 is needed for an extended upside wave.
Ethereum Price Resistance
Ethereum price after a move towards the $11.70 against the US Dollar found support and managed to gain bids. There was a nice upside move, as the price managed to clear the 100 hourly simple moving average. The ETH/USD pair also bounced from the 50% Fib retracement level of the last wave from the $11.50 low to $11.96 high at $11.70. The stated level acted as a support previously as well, so it was not a surprise this time.
A close above the 100 hourly simple moving average is important, but we cannot discard the fact that the price is still below a major resistance area. There is a bearish trend line formed on the hourly chart (data feed via SimpleFX) of ETH/USD, which is currently acting as a resistance and preventing gains. The same trend line prevented upsides on more than two occasions, as the buyers struggled to break it.
It would be interesting to see whether the buyers can manage to clear it this time or not. I doubt, since there is no major catalyst at present for a sustained move higher. However, if something hit news wires, it may encourage the buyers for a move higher.
Hourly MACD – The MACD is currently in the bullish zone, but losing momentum.
Hourly RSI – The RSI is still above the 50 level, which is a positive sign.
Major Support Level – $11.70
Major Resistance Level – $12.00
Charts courtesy – SimpleFX