- Ethereum price as stated in the weekly analysis started a recovery phase, and if all goes well, more gains are possible.
- The price is testing a bearish trend line formed on the hourly chart (data feed via Kraken), which may be considered as a short-term breakout zone.
- On the downside, the 100 hourly simple moving average is a support area, which may act as a buy zone.
Ethereum price may make a sustained move higher. However, buyers need to take the price above $4.60-80 to gain control in the short term.
Ethereum Price – Trend Line Resistance
Ethereum price after trading down towards the $3.30 area managed to hold the ground and currently correcting higher. It has already recovered some ground and at the moment facing a major resistance area near a bearish trend line formed on the hourly chart (data feed via Kraken). The highlighted bearish trend line may play a crucial role for Ethereum price in the near term.
The 50% Fib retracement level of the last drop from the $5.90 high to $3.31 low is also positioned around the highlighted bearish trend line. It suggests that there is a crucial resistance near $4.64-70 where buyers may struggle, and it won’t be easy for them to surpass the seller’s strength. A break above it might take the price higher towards the 76.4% Fib retracement level of the last drop from the $5.90 high to $3.31 low.
On the downside, there is a major support area formed near the 100 simple moving average (H1 chart, Kraken). If the price moves down or corrects, then there is a chance of buyers appearing around the 100 SMA.
Hourly MACD – The MACD may change the slope to bearish, which is a sign that buyers are struggling to clear the trend line resistance area.
Hourly RSI – The RSI is above the 50 level, which is a positive sign.
Intraday Support Level – $4.30
Intraday Resistance Level – $4.70
Charts courtesy of Kraken via Trading View