Ethereum Price Weekly Analysis: Defies Gravity, Looks to Trade Higher

Key Highlights

  • Ethereum price after getting crushed from $6.40 to $3.30 found support and started to a recovery phase.
  • There is a bearish trend line formed on the 4-hours chart of Ethereum price (data feed via Kraken), which if breached may open the doors for more gains.
  • The price is comfortably placed above the 100 MA, which is a bullish sign.

Ethereum price showing a few positive signs. If there is a break above the $4.40-50 level, then a move towards $6.00 is possible.

Ethereum Price – Buy with a break?

Ethereum price moved down by more than 25% recently and dived towards the $3.20-30 support area. The price has recovered and also moved above the 100 simple moving average (H4 chart, Kraken), which is a positive sign for buyers in the short term. It looks like buyers may attempt to take the price higher in the near term.

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However, there are many barriers on the upside waiting for them. The first one is in the form of a bearish trend line formed on the 4-hours chart of Ethereum price (data feed via Kraken). The highlighted trend line and resistance area is coinciding with the 38.2% Fib retracement level of the last drop from the $6.45 high to $3.32 low is also around it. So, we can say that there is a break out level formed near $4.40-50.

Ethereum Price Weekly Analysis

A break above the stated levels could take the price towards the $5.0 area, and even $6.0. On the downside, the 100 SMA (H4 chart, Kraken) may continue to act as a support. A break below it may call for a change in the trend moving ahead.

4-hours MACD – The MACD may change the slope to bearish, which might call for a correction.

4-hours RSI – The RSI is just the 50 level, which is a positive sign for the bulls.

Intraday Support Level – $4.10

Intraday Resistance Level – $4.50

Charts courtesy of Kraken via Trading View

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