Key Highlights
- ETH price is slowly trading higher against the US Dollar, but the momentum is very less.
- There was a short-term bearish line formed on the hourly chart (data feed via SimpleFX) of ETH/USD, which was broken recently.
- The price also closed above the 100 hourly simple moving average, which is a positive sign.
Ethereum price is currently gaining bids and attempting a move higher. It looks like the ETH/USD pair remains a good buy on the downside.
Ethereum Price Support
ETH price recently found support near $7.90 against the US Dollar on many occasions before starting an upside move. During the upside move, there was a break above a couple of important resistance levels. First, the price closed above the 23.6% Fib retracement level of the last decline from the $8.66 high to $7.87 low. Second, there was a break above a short-term bearish line formed on the hourly chart (data feed via SimpleFX) of ETH/USD.
Third, the price closed above the 100 hourly simple moving average. All these are positive signs and suggest that there is a chance of ETH/USD gaining momentum in the near term. It is also important to note that the pair recently failed near the 50% Fib retracement level of the last wave from the $7.06 low to $8.68 high. There were more than two attempts to break the stated level, but sellers failed.
As a result, there was an upside move, taking the price above a couple of crucial hurdles. However, the pair needs to gain momentum, else there can be another dip. In my view buying dips as long as the price is above $7.90 may be considered in the short term.
Hourly MACD – The MACD is currently in the bullish slope.
Hourly RSI – The RSI bounced from the 50 level, and heading north.
Major Support Level – $7.90
Major Resistance Level – $8.60
Charts courtesy – SimpleFX