- Ethereum price managed to correct a few points against the US dollar and traded above the $10.00 level.
- There is a bearish trend line formed on the hourly chart (data feed via Kraken) of ETH/USD, which is acting as a resistance for an upside move.
- The price may continue to struggle in the short term as long as it is below the trend line resistance.
Ethereum price recovered against the US Dollar intraday, but it remains at a risk of more losses as long as it is below the 100 hourly SMA.
Ethereum Price Sell?
Yesterday, I highlighted a couple of trend lines and resistances, and mentioned that the price may struggle to clear them in the near term. There was no respite for the ETH/USD pair, as it remained below resistances and slowly started grinding lower. The most important point is that the price failed to close above the 100 hourly simple moving average, which is a major barrier for the ETH bulls.
Currently, there is a bearish trend line formed on the hourly chart (data feed via Kraken) of ETH/USD, which is acting as a hurdle for more gains and pushing the price down. The pair traded close to the highlighted trend line on a couple of occasions, but failed to break it.
At this moment, the price is trading near the 38.2% Fib retracement level of the last leg from the $8.88 low to $1076 high. A break and close below it could take the price towards the 50% Fib level of the same wave. I think selling remains a preferred option with a stop above the trend line resistance.
Hourly MACD – The MACD is in the bearish zone, and calling for more losses.
Hourly RSI – The RSI just drifted below the 50 level, suggesting the bears are back to take the price down.
Major Support Level – $10.00
Major Resistance Level – $10.60
Charts courtesy – SimpleFX