Key Highlights
- Ethereum price after heavy losses this past week against the US Dollar found support below $10.00 and started recovering.
- There is a major support trend line formed on the daily chart (data feed via Kraken) of ETH/USD, which is acting as a barrier for the bears.
- As long as the price is above the trend line support, there is a chance of more gains in the near term.
Ethereum price after a lot of struggle finally established a support, and may trade higher once again if the bulls gain control.
Ethereum Price Support
Ethereum price ETH after a downside move against the US dollar below the $10.00 level found support, as the bulls managed to prevent any additional weakness. The price started recovering and it looks like the ETH/USD pair is forming a base for the next move higher.
If we look at the daily chart (data feed via Kraken) of ETH/USD, then there is a major bullish trend line formed, which may act as a catalyst for the next move. As long as the price is above the trend line support, the chances of ETH/USD trading higher are very high. The only problem is the price is struggling to close above the 100-day simple moving average, which is acting as a major hurdle for the upside move.
On the upside, an initial resistance above the 100-day SMA is around the 23.6% Fib retracement level of the last drop from the $21.20 high to $9.30 low. A break and close above the 100-day SMA may call for more gains in the near term.
Daily MACD – The MACD is in the bearish slope, but may move into the bullish zone if there is a change in momentum.
Daily RSI – The RSI is around the oversold readings, calling for a correction.
Major Support Level – $10.00
Major Resistance Level – $12.00
Charts courtesy of Kraken via Trading View
