Key Highlights
- ETH price managed to gain bids recently, and traded above the $43.80 resistance against the US Dollar.
- This week’s highlighted bearish trend line with resistance at $43.90 on the hourly chart (ETH/USD, data feed via SimpleFX) was broken.
- The price traded towards $48.40 from where a correction wave was initiated.
Ethereum price gained momentum against the US Dollar to trade above $48.00, and now ETH/USD is under correction.
Ethereum Price Dips Supported?
We saw a range pattern in ETH price recently below the $44 level against the US Dollar. Later, there was an increase in bids, igniting an upside move above $44. The upside move was such that the price was above to break the 61.8% Fib retracement level of the last decline from the $45.60 high to $42.54 low. The price did not stop here, as it cleared the last swing high at $45.60. It ignited a rally towards the 1.618 extension of the last decline from the $45.60 high to $42.54 low.
The most important break was above this week’s highlighted bearish trend line with resistance at $43.90 on the hourly chart of ETH/USD. The price traded as high as $48.38 from where a correction wave was initiated. The price already moved below the 23.6% Fib retracement level of the last wave from the $42.56 low to $48.38 high. However, downsides remain supported above $45.40.
The next major support is around the 50% Fib retracement level of the last wave from the $42.56 low to $48.38 high at $45.47. So, if the price dips from the current levels, it is likely to find buyers near $46.13 and $45.47. On the upside, a retest of $48.38 is possible. Above $48.38, the price could test the $49.00 resistance.
Hourly MACD – The MACD is now placed well in the bullish zone.
Hourly RSI – The RSI is currently around the overbought levels.
Major Support Level – $46.10
Major Resistance Level – $48.40
Charts courtesy – SimpleFX
Disclaimer: The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. It should not be regarded as investment/trading advice. All the information is believed to come from reliable sources. NewsBTC does not warrant the accuracy, correctness, or completeness of information in its analysis and therefore will not be liable for any loss incurred.
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