- 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
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.