- ETH price traded further lower yesterday against the US Dollar, and tested the $12.25 support.
- Yesterday’s highlighted bearish trend line on the hourly chart (data feed via SimpleFX) of ETH/USD acted as a resistance earlier, but recently broken by buyers.
- I stated that the price made a short-term top yesterday, which worked perfectly.
Ethereum price declined after a creating top against the US Dollar, found support at $12.25, and now currently attempting a recovery.
Ethereum Price Recovery
Ethereum price made a short-term top yesterday against the US Dollar as I pointed out. There was a sharp decline, as the ETH/USD pair fell below the $12.50 support area and somehow managed to hold $12.25. Yesterday’s highlighted bearish trend line on the hourly chart (data feed via SimpleFX) of ETH/USD acted as a resistance and pushed the price down.
However, the ETH buyers later managed to break the same trend line, which is a positive sign for a recovery. The price is also above the 23.6% Fib retracement level of the last drop from the $14.26 high to $12.25 low. So, it means there is a chance of more gains in the near term. However, the upside move was limited by the 100 hourly simple moving average. The stated MA is acting as a hurdle and preventing gains.
The buyers have to break the 100 hourly SMA and the 50% Fib retracement level of the last drop from the $14.26 high to $12.25 low. It may then increase the possibility of further upsides towards the $13.50 level. As long as there is no upside break, there is a chance of yet another dip in the near term.
Hourly MACD – The MACD is currently attempting to move back in the bullish zone.
Hourly RSI – The RSI is just above the 50 level, and the bulls may attempt for a push higher.
Major Support Level – $12.60
Major Resistance Level – $13.30
Charts courtesy – SimpleFX