- Ethereum price after getting crushed from $6.40 to $3.30 found support and started to a recovery phase.
- There is a bearish trend line formed on the 4-hours chart of Ethereum price (data feed via Kraken), which if breached may open the doors for more gains.
- The price is comfortably placed above the 100 MA, which is a bullish sign.
Ethereum price showing a few positive signs. If there is a break above the $4.40-50 level, then a move towards $6.00 is possible.
Ethereum Price – Buy with a break?
Ethereum price moved down by more than 25% recently and dived towards the $3.20-30 support area. The price has recovered and also moved above the 100 simple moving average (H4 chart, Kraken), which is a positive sign for buyers in the short term. It looks like buyers may attempt to take the price higher in the near term.
However, there are many barriers on the upside waiting for them. The first one is in the form of a bearish trend line formed on the 4-hours chart of Ethereum price (data feed via Kraken). The highlighted trend line and resistance area is coinciding with the 38.2% Fib retracement level of the last drop from the $6.45 high to $3.32 low is also around it. So, we can say that there is a break out level formed near $4.40-50.
A break above the stated levels could take the price towards the $5.0 area, and even $6.0. On the downside, the 100 SMA (H4 chart, Kraken) may continue to act as a support. A break below it may call for a change in the trend moving ahead.
4-hours MACD – The MACD may change the slope to bearish, which might call for a correction.
4-hours RSI – The RSI is just the 50 level, which is a positive sign for the bulls.
Intraday Support Level – $4.10
Intraday Resistance Level – $4.50
Charts courtesy of Kraken via Trading View