- Ethereum price moved back higher and broke the bearish trend line as highlighted in the last technical analysis.
- Our buying with a break above the trend line resistance area idea worked, and the price reached our initial buy target.
- There is a bullish trend line forming on the hourly chart of Ethereum price (data feed via Kraken), which can be seen as a buy zone moving ahead.
Ethereum price moved higher and broke the $5.20 resistance area. Looking ahead, if buyers remain active more gains are likely.
Ethereum Price – Buy dips?
Ethereum price corrected this past week, but found support near the $4.00-10 area where buyers successfully defended any further losses. There was a bearish trend line formed on the hourly chart of Ethereum price (data feed via Kraken), which we were waiting to be breached to enter a long trade. The price did move higher and cleared the trend line to ignite an upside move. Our initial target of $5.45 was achieved and I think it can be a good idea to wait for entering another buy trade.
There is currently a bullish trend line forming on the hourly chart of Ethereum price, which may act as a support area if the price attempts to move down once again. We can even consider buying around the trend line support. As long as the price is above it, there is a possibility of trading back higher.
On the upside an initial hurdle can be around the 61.8% Fib retracement level of the last drop from the $6.47 high to $4.09 low. A break above it could call for a move towards the last swing high of $6.50.
On the downside, a break below the trend line support may call for a change in the trend in the short term.
Hourly MACD – The MACD is in the bullish slope, which is a positive sign.
Hourly RSI – The RSI is heading towards the overbought levels, calling for a correction.
Intraday Support Level – $5.20
Intraday Resistance Level – $5.60
Charts courtesy of Kraken via Trading View