- Ethereum price managed to start a recovery after trading as low as $5.68 against the US Dollar.
- The current recovery is facing resistance near a major bearish trend line formed on the daily chart of ETH/USD (data feed via SimpleFX).
- A break above the highlighted trend line resistance may ignite an upside move.
Ethereum price is recovering well at the moment against the US dollar and Bitcoin, but also reaching a major pivot area.
Ethereum Price Hurdle
There was a major decline in Ethereum price against the US Dollar and BTC before starting a recovery. ETH/USD traded as low as $5.68 where the buyers appeared and started a recovery. There was a move above the 23.6% Fib retracement level of the last decline from the $12.68 high to $5.68 low. It means there is a chance of further gains in the near term if the buyers remain in control.
There is a major bearish trend line formed on the daily chart of ETH/USD (data feed via SimpleFX). It is currently acting as a resistance and preventing an upside move. Moreover, the 38.2% Fib retracement level of the last decline from the $12.68 high to $5.68 low is also acting as a resistance. It looks like the price is finding it very hard to break the trend line resistance.
If there is a break above the trend line, then there are chances of further gains in the short term. The next stop for the buyers could be around the $9.20 level. On the downside, the $7.50 level is a key support, and may act as a barrier for a break down.
Daily MACD – The MACD is still in the bearish zone, which is a concern for the ETH buyers.
Daily RSI – The RSI has recovered well from the negative zone, but still below the 50 level.
Major Support Level – $7.50
Major Resistance Level – $8.50
Charts courtesy – SimpleFX