- Ethereum price after struggling for a quite some time against the US Dollar managed to gain traction and started to move higher.
- There was a bearish trend line formed on the 4-hours chart (data feed via Kraken) of ETH/USD, which was broken during the upside drift.
- It looks like the price may be setting up for more gains if the recent break is a real one.
Ethereum price struggle looks like over, and ETH/USD may be positioning for another upside ride if there is a close above 100 SMA (H4).
Ethereum Price – Buying dips favored
Ethereum price after a continuous decline for around 10 days managed to find bids around the $7.00 support area. For the whole past week I suggested selling rallies or a pullback. My idea worked for the most of time. Now, I think it’s time to change the bias from bearish to bullish. There was a bearish trend line formed on the 4-hours chart (data feed via Kraken) of ETH/USD, which was cleared by the buyers recently to open the doors for more gains.
The price also settled above the 23.6% Fib retracement level of the last drop from the $10.00 high to $7.11 low. Currently, the price is attempting to close above the 100 simple moving average on the 4-hours chart, and if there is a close above it, then it would be another bullish sign.
Moreover, the price is also around the 38.2% Fib retracement level of the last drop from the $10.00 high to $7.11 low, so there is a chance of a minor correction from the current levels. I would suggest to drop on a lower timeframe chart, and wait for a correction in two waves to enter a long trade. The stop should be very tight and not more than a few points.
4-hours MACD – The MACD is in the bullish zone, which is a positive sign.
4-hours RSI – The RSI is around the oversold reading, which means the price may correct a few points moving ahead.
Intraday Support Level – $7.50
Intraday Resistance Level – $8.50
Charts courtesy of Kraken via Trading View
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