- Ethereum price after a nasty decline against the US Dollar this past week found support near $7.00.
- ETH/USD recovered a few points before closing the week above the $8.00 resistance area.
- There was a bearish trend line formed on the 4-hours chart of Ethereum price (data feed via Kraken), which was broken to open the doors for a move higher.
Ethereum price started a correction after a monster decline. Can the price consolidate before gaining further or is this an indecision?
Ethereum Price – Buy Dips?
Ethereum price declined heavily this past week and traded below the $7.0 level against the US Dollar. Sellers were completely in control and succeeded in taking ETH/USD down during this past week. However, the downside was stalled near $7.00, and the bulls managed to push the price back up. There was a bearish trend line formed on the 4-hours chart of Ethereum price (data feed via Kraken), which was broken to set the pace for a correction.
After a break, the price traded with a positive tone and closed the week above the $8.00 resistance area. However, the price found sellers near the $8.50 area and moved down once again. The price before closing the week started to consolidate. It looks like there is a chance of a range trading before the price makes the next move.
Now, the next move may be a downside, as it looks like a correction is likely over and ETH may start to weaken once again. It won’t be easy for the bulls to take ETH/USD higher in the near term. On the upside, a major resistance area is near $9.00.
4-hours MACD – The MACD is about to change the slope to bearish, which is a negative sign for ETH moving ahead.
4-hours RSI – The RSI is just around the 50 level, suggesting a break is near.
Intraday Support Level – $8.00
Intraday Resistance Level – $9.00
Charts courtesy of Kraken via Trading View