Key Highlights
- Ethereum price failed to hold a major support area, and traded down to ignite a bear rally in the short term.
- There was a bullish trend line is formed on the 2-hours chart of Ethereum price (data feed via Kraken) that was broken recently, calling for more losses.
- The price also cleared the 100 simple moving average (H2 chart, Kraken), which is a signal that sellers are in control at present.
Ethereum price cleared a couple of important support levels. Selling rallies closer to the 100 MA (H2 chart) can be considered in the near term.
100 MA as Resistance for Ethereum Price
Ethereum price formed a major support area yesterday in the form of a bullish trend line on the 2-hours chart (data feed via Kraken). It provided support for some time, but at the end sellers managed to break it to take the price down. The worst thing is that the price also moved below the 100 simple moving average (2-hours chart, Kraken), which can be considered as a strong sell signal.
As long as the price is below the 100 MA, buyers may struggle to take the price higher. It is now aligned with the broken support trend line. So, the area which acted as a support earlier may now act as a resistance. Moreover, the 38.2% Fib retracement level of the last drop from the $5.960 high to $4.00 low is also positioned around the highlighted resistance area.
On the downside, the most important support area can be $4.0, and a break below it may take the price back towards $3.5.
Hourly MACD – The MACD is in the bearish slope, which is a negative sign in the short term.
Hourly RSI – The RSI is also below the 50 level, calling for more losses.
Intraday Support Level – $4.00
Intraday Resistance Level – $4.75
Charts courtesy of Kraken via Trading View
