Key Highlights
- ETH price managed to gain bids recently, and traded above the $43.80 resistance against the US Dollar.
- This week’s highlighted bearish trend line with resistance at $43.90 on the hourly chart (ETH/USD, data feed via SimpleFX) was broken.
- The price traded towards $48.40 from where a correction wave was initiated.
Ethereum price gained momentum against the US Dollar to trade above $48.00, and now ETH/USD is under correction.
Ethereum Price Dips Supported?
We saw a range pattern in ETH price recently below the $44 level against the US Dollar. Later, there was an increase in bids, igniting an upside move above $44. The upside move was such that the price was above to break the 61.8% Fib retracement level of the last decline from the $45.60 high to $42.54 low. The price did not stop here, as it cleared the last swing high at $45.60. It ignited a rally towards the 1.618 extension of the last decline from the $45.60 high to $42.54 low.
The most important break was above this week’s highlighted bearish trend line with resistance at $43.90 on the hourly chart of ETH/USD. The price traded as high as $48.38 from where a correction wave was initiated. The price already moved below the 23.6% Fib retracement level of the last wave from the $42.56 low to $48.38 high. However, downsides remain supported above $45.40.
The next major support is around the 50% Fib retracement level of the last wave from the $42.56 low to $48.38 high at $45.47. So, if the price dips from the current levels, it is likely to find buyers near $46.13 and $45.47. On the upside, a retest of $48.38 is possible. Above $48.38, the price could test the $49.00 resistance.
Hourly MACD – The MACD is now placed well in the bullish zone.
Hourly RSI – The RSI is currently around the overbought levels.
Major Support Level – $46.10
Major Resistance Level – $48.40
Charts courtesy – SimpleFX
