Key Highlights
- ETH price remained below the $12.00 resistance over the weekend against the US Dollar.
- There is a bearish trend line formed on the hourly chart (data feed via SimpleFX) of ETH/USD, which can act as a major barrier for the buyers.
- The pair is also below the 100 hourly simple moving average, and struggling to break it.
Ethereum price after a crucial decline this past week started trading in a range, and currently waiting for a catalyst for an upside move.
Ethereum Price Barrier
ETH faced a lot of heat this past week versus the US dollar, and it traded as low as $11.73 where somehow the buyers managed to protect the downside. The ETH/USD pair has been consolidating in a range since then, and waiting for a catalyst for recovery. The pair recently attempted to climb higher but, the 38.2% retracement level of the last leg from the $12.75 high to $11.73 low acted as a resistance.
Moreover, there is a bearish trend line formed on the hourly chart (data feed via SimpleFX) of ETH/USD that prevented the upside move. The price moved down once again, and currently facing sellers near the 100 hourly simple moving average. The stated MA is also coinciding with the 23.6% retracement level of the last leg from the $12.75 high to $11.73 low. So, it represents a major barrier for a recovery in the near term.
We need to see whether the ETH buyers can break the highlighted resistance area or not. A successful close above the trend line resistance may ignite an upside move. In that situation, one may consider buying with a tight stop for a false break.
Hourly MACD – The MACD is currently in the bearish zone, but attempting to change the slope.
Hourly RSI – The RSI is currently heading north, and may soon attempt to break the 50 level.
Major Support Level – $11.80
Major Resistance Level – $12.00
Charts courtesy – SimpleFX