- Ethereum price moved down a couple of points as forecasted in yesterday’s post.
- The bearish candles as highlighted on the daily chart played well and pushed the price down towards the $10.50 as forecasted.
- There is a bullish trend line formed on the hourly chart (data feed via Kraken), acted as a barrier for the bears and preventing a downside move.
Ethereum price moved down as a part of a correction. It also spiked below a support trend line on a couple of occasions, but failed to close below it.
Ethereum Price – What’s next?
Ethereum price after setting a short-term top near the $15.16 level traded down and my idea that the price may correct down worked perfectly. There were a couple of bearish signs for the price noted yesterday, which played well in igniting a downside move. The price traded below the $10.50 level as forecasted, and created an intraday low of $10.02.
There is a bullish trend line formed on the hourly chart (data feed via Kraken), which was breached on a couple of occasions. However, the positive for the bulls is the fact that there was no hourly close below the trend line and support area. The price recovered well, and even closed above the 38.2% Fib retracement level of the last drop from the $15.16 high to $10.02 low.
The price is currently trading near the 100 simple moving average (hourly, data feed via Kraken), which is acting as a resistance for more gains. A break above the same may call for an upside move towards the 76.4% Fib retracement level of the last drop from the $15.16 high to $10.02 low.
Hourly MACD – The MACD is in the bearish slope, which is a negative sign.
Hourly RSI – The RSI is also below the 50 level, suggesting the fact that the bears were under control.
Intraday Support Level – $11.85
Intraday Resistance Level – $13.00
Charts courtesy of Kraken via Trading View