Key Highlights
- ETH price after a nice upside move against the US Dollar found resistance near $11.22, and started a correction.
- There is a descending channel pattern formed on the hourly chart of ETH/USD (data feed via SimpleFX), which is acting as a downside move catalyst.
- The price may dip towards $10.90 before gaining bids once again for an upside move.
Ethereum price after trading a few points above $11.20 struggled against the US Dollar, and now ETH/USD has started a correction wave.
Ethereum Price Trend
There was a nice uptrend initiated in ETH price against the US Dollar, as there was a move above $11.00. The price crawled higher and traded with a positive tone to trade as high as $11.22. It later found resistance, and started a downside move. It looks like there was a completion of a wave near $11.20, which means a correction wave is now initiated. The price already broke the 23.6% Fib retracement level of the last wave from the $10.41 low to $11.22 high. It means there is a chance of further downsides.
Looking at the hourly chart of ETH/USD (data feed via SimpleFX), there is a descending channel pattern formed with support at 10.90. The same channel pattern is currently taking the pair slowly down with an active resistance at $11.05. So, there is a chance of another dip before the ETH buyers appear. On the downside, the channel support is at $10.90. The same level also coincides with the 38.2% Fib retracement level of the last wave from the $10.41 low to $11.22 high.
So, the $10.90 support area is important, and there is a chance of it acting as a buy zone in the short term.
Hourly MACD – The MACD is in the bearish zone, but may move into in the bullish slope.
Hourly RSI – The RSI is attempting to move back above the 50 level.
Major Support Level – $10.90
Major Resistance Level – $11.05
Charts courtesy – SimpleFX
