Key Highlights
- Ethereum price after a nasty decline against the US Dollar found buyers and started to move higher.
- Yesterday’s highlighted bearish trend line on the hourly chart (data feed via Kraken) of ETH/USD was broken to clear the way for a recovery.
- If the broken trend line now acts as a support area, there are chances of more gains moving ahead.
Ethereum price is back in action against the US Dollar, as it recovered sharply and traded higher. Can it gain further?
Ethereum Price Recovery
Ethereum price ETH dived yesterday to trade towards the $7.00 level against the US Dollar. However, the price managed to recover later and traded higher. There was a nice upside reaction, as the price broke a critical resistance area on the way up. As mentioned, there was a close above yesterday’s highlighted bearish trend line on the hourly chart (data feed via Kraken) of ETH/USD, which was an important sign of a recovery.
The price recently traded as high as $10.45 where it is finding offers. So, there is a chance of a minor downside move, which could take the price towards the 23.6% Fib retracement level of the last wave from the $7.09 low to $10.45 high. The stated level also coincides with the broken trend line, which may now act as a support zone.
So, there is a possibility of ETH finding bids near the $9.60-70 levels. Any further downside may take the price towards the 50% Fib retracement level of the last wave from the $7.09 low to $10.45 high. On the upside, the most important resistance is around the 100 hourly simple moving average, which is positioned at $10.65.
Hourly MACD – The MACD is now in the bullish zone, which is a positive sign.
Hourly RSI – The RSI is also above the 50 level, which is another bullish sign.
Major Support Level – $9.60
Major Resistance Level – $10.65
Charts courtesy – SimpleFX