Key Highlights
- Ethereum price after moving a few points down spiked higher once again, but failed to sustain momentum.
- A bullish trend line is formed on the 2-hours chart of Ethereum price (data feed via Kraken), which can be considered as a buy area.
- Moreover, the price is above the 100 simple moving average (2-hours chart, Kraken), which is acting as a catalyst for an upside move.
Ethereum price is looking positive on the 2-hours chart. There is a trend line support and 100 SMA providing support to the bulls in the short term.
Buy More?
Yesterday, I highlighted an idea of buying dips in Ethereum price. It worked perfectly, as after moving a few points down buyers appeared and pushed the price back higher. Now, what’s next? Can we consider buying once again? The answer may be yes. Let’s look at the 2-hours chart of Ethereum price (data feed via Kraken). There is a bullish trend line is formed, which may act as a buy zone for the price and push it back higher.
The most important point is the fact that the price is above the 100 simple moving average (2-hours chart, Kraken), which means there is a tough barrier for sellers if they attempt to move the price down. So, one may consider buying around the trend line support area as long as the price is above the 100 SMA (H2).
On the upside, the first resistance can be around the 61.8% Fib retracement level of the last drop from the $6.47 high to $4.09 low. If somehow buyers manage to break it, then a move towards the recent high of $6.50 is possible in the near term.
So, keep a close eye on the 100 SMA (H2) if you are looking to buy Ethereums.
Hourly MACD – The MACD may change slope to the bullish zone, which may be a positive call for the buyers.
Hourly RSI – The RSI is above the 50 level, calling for more gains.
Intraday Support Level – $5.05
Intraday Resistance Level – $5.35
Charts courtesy of Kraken via Trading View
