- Ethereum price after completing a correction towards $11.00 found buyers and traded back towards the $12.50 level.
- My buy idea worked perfectly, and all our targets were achieved successfully.
- There is a resistance trend line formed on the hourly chart (data feed via Kraken), which prevented additional gains above $12.50.
Ethereum price moved back higher, but the upside was limited. Can it correct lower once again? Can we buy one more time?
Ethereum Price – $11.00 Holds Key
Ethereum price completed a correction phase around the $11.00 support area recently and our trade worked perfectly. This week I suggested that buying dips may be a good idea in ETH against the USD. The same did wonders, as the price moved higher towards the $12.50 area. Around the stated level, there was a resistance trend line on the hourly chart (data feed via Kraken), which stalled any further gains.
The price is currently moving back lower and heading towards the 38.2% Fib retracement level of the last leg from the $9.50 low to $12.48 high. The stated fib level may provide support to ETHUSD in the short term. However, the most important support area on the downside is around the 100 simple moving average (hourly, data feed via Kraken), as it is also coinciding with the 50% Fib retracement level of the last leg from the $9.50 low to $12.48 high.
If the price moves down further, then the 100 SMA may act as a major barrier for the bears, as it is positioned around $11.00. A break below the same might call for more losses in the short term. So, we can consider a small buy near 100 SMA with tight stop. And, if it breaks it we can even consider a sell trade.
Hourly MACD – The MACD is in the bearish area, calling for more losses.
Hourly RSI – The RSI is below the 50 level, which is a bearish sign.
Intraday Support Level – $11.20
Intraday Resistance Level – $12.20
Charts courtesy of Kraken via Trading View