- Ethereum price continued its upside streak this past week and looks set for more gains in the near term.
- There is a bearish trend line formed on the hourly chart of Ethereum price (data feed via Kraken), which may act as a pivot area for the price.
- Looking at the higher time frame chart, the price is heading towards a major bullish trend line on the 4-hours chart, which may act as a buy area.
Ethereum price is under a lot of bullish pressure, and it looks like there is a chance of bouncing from $4.50 back towards $6.00 moving ahead.
Ethereum Price: Buy with a break?
Ethereum price after surging towards the $6.50 level found sellers and started to move lower. Now, we have to see whether the current price action is a part of correction or a change of trend. The price dropped sharply, and currently finding bids near the 100 hourly simple moving average (data feed via Kraken). There is a bearish trend line formed on the same chart, which may play a major role for both buyers and sellers in the near term. If the price manages to hold the 100 hourly MA, then a move back towards the 38.2% Fib retracement level of the last drop from the $6.50 high to $4.32 low is possible.
However, we need to keep an eye on the highlighted trend line and resistance area. A break above it may open the doors for a move higher. The next stop for buyers in that situation could be around the 61.8% Fib retracement level of the last drop from the $6.50 high to $4.32 low. The hourly MACD is about to change the slope from bearish to bullish, which is a positive sign for the bulls in the short term. Let us see whether it can encourage them to take the price back higher.
If we look at the higher time frame chart, then the price is likely heading towards a major support area. There is a bullish trend line formed on the 4-hours chart of Ethereum price (data feed via Kraken). The price already tested the trend line once recently, and it looks like it may attempt once more. The highlighted trend line and support area holds a lot of importance, as a break below it could take the price down further.
On the flip side, if the price finds support near the trend line and support trend area, then a move back higher is possible. An initial resistance on the upside can be around the 23.6% Fib retracement level of the last drop from the $6.50 high to $4.31 low. A break above the same could call for a buying opportunity in the near term. There is a minor confluence forming on the 4-hours MACD, and if buyers manage to overcome it, then a test of the 50% Fib retracement level of the last drop from the $6.50 high to $4.31 low.
4-hours MACD – The MACD is in the bearish slope, which is a negative sign.
4-hours RSI – The RSI is just below the 50 level, which is a concern for buyers.
Intraday Support Level – $4.30
Intraday Resistance Level – $5.0
Charts courtesy of Kraken via Trading View