- Ethereum price finally managed to break an important resistance around 0.00390BTC-0.0040BTC.
- It also cleared a bearish trend line formed on the hourly chart, which can be seen as a positive sign.
- The only question is whether this is a real break or not and can the price continue trading higher.
Ethereum price spiked higher Intraday, and broke a resistance trend line as highlighted in yesterday’s post.
Can it be broken?
The Ethereum price after struggling for some time to break a crucial bearish trend line formed on the hourly chart managed to gain traction. There was an upside reaction, which enabled the price to settle above the highlighted trend line. However, there is a concerning sign, as there was no major follow through after the trend line break. The price is currently finding sellers around the 100 hourly simple moving average, i.e. acting as a barrier for buyers.
Moreover, the 61.8% Fib retracement level of the last drop from 0.0042BTC to 0.00348BTC is acting as a resistance and preventing gains. The hourly RSI has moved above the 50 level, which might help buyers to take the price higher. Any additional gains from the current levels may take the price towards the 76.4 Fib level, followed by the last swing high of 0.00420BTC.
On the downside, the broken trend line might act as a short-term support. Only a break below it may point that the recent break is a false one and the price might move lower. In that situation, the price could trade lower and trade towards a pivot area of 0.00376BTC. Any additional losses may depend on how buyers defend the mentioned support area.
Intraday Support Level – 0.00380BTC
Intraday Resistance Level – 0.0040BTC
The hourly MACD is moving to the bullish area, which is a sign of more gains ahead.
Charts courtesy of Trading View