Ethereum Price Technical Analysis – Buying Worked, Further Gains Eyed

Key Highlights

  • Ethereum price continued to gain bids against the US Dollar and closed above the $12.00 resistance level.
  • Yesterday’s idea of buying dips worked perfectly, as the ETH bulls defended the downside move.
  • There is a new bullish trend line formed on the hourly chart (data feed via Kraken) of ETH/USD, which is acting as a support area for the pair.

Ethereum price retained its bullish bias against the US Dollar, and my yesterday’s idea did well. Now, can ETH/USD trade further higher?

Ethereum Price Trend

Ethereum price ETH continued to gain traction and moved above the all-important $12.00 resistance area against the US Dollar. Yesterday, I highlighted the importance of the 100 hourly simple moving average and the 50% Fib retracement level of the last wave up from the $10.83 low to $12.03 high. I was hoping them to act as a buy zone and provide bids.

Both the stated area provided support and pushed the price higher. There is a now a bullish trend line formed on the hourly chart (data feed via Kraken) of ETH/USD, which is acting as a catalyst for the upside move and helping buyers. The price recently traded as high as $12.86, and currently correcting lower.

Ethereum Price Technical Analysis

Ethereum Price Technical Analysis

On the downside, the trend line along with the 38.2% Fib retracement level of the last leg from the $10.84 low to $12.86 high may act as a support zone. As long as the price is above the stated support area, there is a chance of more gains in the near term. A break below the trend line may take the price towards the 61.8% Fib retracement level of the last leg from the $10.84 low to $12.86 high may act as a support zone.

Hourly MACD – The MACD is in the bullish zone, calling for more gain in ETH.

Hourly RSI – The RSI is also above the 50 level, which is a bullish sign.

Major Support Level – $12.10

Major Resistance Level – $12.60

 

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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