- ETH price after trading as high as $13.34 versus the US Dollar traded lower and currently testing a crucial support.
- There is a major bullish trend line formed on the hourly chart (data feed via SimpleFX) of ETH/USD, which is currently acting as a support.
- The 100 hourly simple moving average is also currently providing support and protecting further declines.
Ethereum price is currently under a correction mode and testing a support area versus the US Dollar. Can ETH/USD bounce sooner or later?
Ethereum Price Correction
Ethereum price yesterday spiked higher against the US dollar to registered good gains. There was a nice upside move, putting ETH in an uptrend. The price traded as high as $13.34 (data feed via SimpleFX), where sellers appeared and defended the upside move. The price then started a correction, and traded below the 38.2% Fib retracement level of the wave from the $12.89 low to $13.34 high.
However, the downside was stalled near a major support area formed near $13.00. First, there is a major bullish trend line formed on the hourly chart (data feed via SimpleFX) of ETH/USD. Second, the 100 hourly simple moving average is sitting near the trend line support. Third, the 61.8% Fib retracement level of the wave from the $12.89 low to $13.34 high is also around the same area.
So, we can say that a lot of things are aligned perfectly at $13.00, which may result in a bounce sooner or later. As long as the price is above the highlighted trend line and support, it may recover soon. One may consider buying with a stop below the 100 hourly SMA.
Hourly MACD – The MACD has moved from the bullish to bearish zone, which is a sign of divergence.
Hourly RSI – The RSI is also below the 50 level, but losing momentum for more declines.
Major Support Level – $13.00
Major Resistance Level – $13.20
Charts courtesy – SimplFX