- Ethereum price climbed higher and managed to break a major resistance area to open the doors for more gains.
- The price broke a bearish trend line formed on the hourly chart (data feed via Kraken), which may now act as a support if the price corrects lower.
- On the upside, the all-important $6.00 may play a crucial role and buyers might find it hard to break it.
Ethereum price spiked higher to trade above $5.50. There was a classic bullish break noted on the hourly chart calling for more upside moves.
Ethereum Price – Buy Dips?
Ethereum price looks like recovered well after forming a base near the $3.30-00 support area. Buyers gained control in taking the price higher in the short term. Yesterday, I highlighted a bearish trend line on the hourly chart (data feed via Kraken), which was supposed to play a crucial role for both buyers and sellers. It looks like buyers had an upper hand in taking the price above the highlighted trend line and resistance area. There was a nice upside rally after the break, as the price traded as high as $5.90.
It looks like buyers are finding offers near the stated level, as the all-important $6.00 handle may be playing in the mind of investors. There is a chance of a correction moving ahead that may find initial bids near the 23.6% Fib retracement level of the last wave from the $4.00 low to $5.90 high. The next support area on the downside may be around the $5.00 handle.
However, the most important support area may be around the broken trend line, which might act as a barrier for sellers moving ahead. The best part is that the 100 simple moving average (H1 chart, Kraken) is also positioned near it.
Hourly MACD – The MACD is in the bullish zone, calling for more gains.
Hourly RSI – The RSI is also above the 50 level, which is a bullish sign.
Intraday Support Level – $5.40
Intraday Resistance Level – $5.90
Charts courtesy of Kraken via Trading View