Key Highlights
- ETH price after trading as high as $11.38 found resistance and moved down against the US Dollar.
- There was an important support trend line at $11.30 of an ascending channel on the hourly chart of ETH/USD (data feed via SimpleFX), which was broken.
- The price traded towards $10.80 where buyers appeared, and the price bounced back.
Ethereum price managed to hold the $10.80 support during the recent decline, and ETH/USD may now attempt to retest the last swing high.
Ethereum Price Bounces Back
We were following an ascending channel pattern on the hourly chart of ETH/USD (data feed via SimpleFX) with support at $11.30. Yesterday, the price failed to break the $11.40 barrier, and moved down. During the downside move, the price broke an important support trend line at $11.30. It also moved below the 50% Fib retracement level of the last wave from the $10.92 low to $11.38 high.
There was a sharp downside move, taking the price below the $11.00 level. A new low at $10.81 was formed from where the price started moving higher once again. The price is now back up, and trading above the 50% Fib retracement level of the last decline from the $11.38 high to $10.81 low. However, the price is struggling to trade above a bearish trend line, and finding sellers near $11.25.
The same resistance also represents the 76.4% Fib retracement level of the last decline from the $11.38 high to $10.81 low. However, the price is well supported above the 100 hourly simple moving average at $11.10, which is a positive sign. If the price stays above the 100 SMA, it could break $11.25 for a move towards $11.38.
Hourly MACD – The MACD is back from the bearish to bullish slope.
Hourly RSI – The RSI has now settled back above the 50 level, which is a positive sign.
Major Support Level – $11.10
Major Resistance Level – $11.25
Charts courtesy – SimpleFX
