- ETH price after a sharp decline towards $47.40 against the US Dollar found support and recovered.
- There is a new connecting bearish trend line formed with resistance at $51.40 on the hourly chart (ETH/USD, data feed via SimpleFX).
- The price may dip a few points to $50.80 before finding support for the next move.
Ethereum price after a sharp decline recovered and moved above $50.80 against the US Dollar, putting ETH/USD back in the bullish zone.
Ethereum Price Buy Dips?
It looks like ETH price is back in the bullish zone after a dip towards $47 against the US Dollar. Yesterday, we saw a nasty decline towards $47.40 where the price found support and later started recovering. The upside was excellent, as the price was able to move above the 50% Fib retracement level of the last decline from the $52.42 high to $47.40 low. The upside move was such that the price easily moved above the 50 handle.
Later, there was a move towards 76.4% Fib retracement level of the last decline from the $52.42 high to $47.40 low where it faced sellers. Also, a new connecting bearish trend line with resistance at $51.40 on the hourly chart of ETH/USD acted as a hurdle. At the moment, the price is trading in a tiny range with a chance of a minor dip to $50.80.
The price may test the 23.6% Fib retracement level of the last wave from the $47.40 low to $51.78 high. In my view, dips remain supported around $50.80. If there is any decline, the price may find support. The 100 hourly simple moving average is also waiting at $50.60 to provide support if the price moves down.
Hourly MACD – The MACD is now back in the bullish zone.
Hourly RSI – The RSI has moved above the 50 level, and showing positive signs.
Major Support Level – $50.80
Major Resistance Level – $51.40
Charts courtesy – SimpleFX