- Ethereum price slowly and steadily moved down this past week against the US Dollar.
- The price is currently trading near a critical support area, which must hold if ETHUSD has to move back higher.
- There is a bullish trend line formed on the 4-hours chart of Ethereum price (data feed via Kraken), which may act as a pivot zone for ETH moving ahead.
Ethereum price weakened a few points this past week. Now, can it manage to recover or will it break down for more losses? Let’s try to figure it out.
Ethereum Price – Trend Line Support Holds Key
Ethereum price traded in a stable fashion this past week, as there were no wild swings in ETHUSD. The price was mostly seen struggling this past week, and every time there was a minor correction, bears stepped in to prevent additional gains. Now, the price seems to be trading near a crucial support area, as ETH is trading near a monster bullish trend line on the 4-hours chart of Ethereum price (data feed via Kraken).
If the price has to remain in the bullish zone, then the trend line support must hold in the near term. The 38.2% Fib retracement level of the last wave from the $3.5 low to $15.10 high is also around the trend line support area, pointing towards the importance of the support area.
If there is a break below the trend line support area, and ETHUSD closes below it, then more losses are likely moving ahead. The 50% Fib retracement level of the last wave from the $3.5 low to $15.10 high can also be tested. If you are looking to buy, then stop should be a H4 candle close below the trend line support area.
4-hours MACD – The MACD is in the bearish zone, calling for a downside move.
4-hours RSI – The RSI is just above the 50 level, which is a positive sign for the bulls.
Intraday Support Level – $10.00
Intraday Resistance Level – $11.80
Charts courtesy of Kraken via Trading View