Ethereum price managed to hold an important support area and bounced, but can it continue to gain bids in the near term?
Key Highlights
- Ethereum price finally showed some positive signs this past week and managed to trade higher against the US Dollar.
- This past week’s highlighted support trend line on the daily chart (data feed via Kraken) of ETH/USD played its part well in preventing further losses.
- The price also moved above the 100-day simple moving average, which is a positive sign for the bulls.
Ethereum Price Recovery
Ethereum price ETH after weakening a lot against the US Dollar started finding buyers as a major support area on the daily chart at $9.50 acted as a barrier for sellers. Moreover, I highlighted a bullish trend line on the daily chart (data feed via Kraken) of ETH/USD this past week which also played well and stalled the downside move.
There was a solid buying interest noted around the highlighted trend line support, and as a result, there was a recovery in ETH/USD. The best part of the recovery was the fact that the price moved above the 100-day simple moving average. In short, there are a few positive signals, calling for more gains in the near term. However, at the same time, there is a concern for the ETH bulls.
On the upside, the 23.6% Fib retracement level of the last drop from the $21.20 high to $9.30 low is acting as a major hurdle and preventing any further recovery. A break and close above the stated fib level is needed if the price has to stay positive and trade further higher in the near term.
Daily MACD – The MACD is in the bullish slope, which is a good sign for the bulls.
Daily RSI – The RSI is struggling to settle above the 50 level, which holds the key for the next move.
Major Support Level – $11.00
Major Resistance Level – $12.25
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Source: NewsBTC