Key Highlights

Ethereum price after a sharp decline managed to find support near the $3.00-20 area, as it represents a monster barrier for sellers.

The price is now recovering, and trading near a bearish trend line formed on the hourly chart of Ethereum price (data feed via Kraken).

A break above the highlighted trend line and resistance area may call for more gains in the near term.

Ethereum price after collapsing finally managed to find support. $3.00-20 support area holds the key for the longer run and must hold.

Ethereum Price – Buy with a break?

Ethereum price recovered well after testing a monster support area. Buyers appeared and defended the $3.00-20 area successfully, and there is a chance that the price may extend its gains in the near term. However, there are a few resistances formed on the upside for buyers.

Currently, the price is trading near a bearish trend line formed on the hourly chart (data feed via Kraken), which is acting as a hurdle for more gains. The highlighted resistance trend line acted as a resistance earlier, and may continue to stall the upside move. So, in order for buyers to take the price further higher, the trend line must be broken. It won’t be an easy job for them, as the 100 simple moving average (H1 chart, Kraken) is also aligned with the highlighted trend line resistance.

Moreover, the 50% Fib retracement level of the last drop from the $5.78 high to $3.18 is also around the 100 MA to act as a barrier for a break. A break above the 100 MA may open the doors for a move towards the $5.0 area.

Hourly MACD – The MACD has changed the slope to bearish, which is not a positive sign for bulls.

Hourly RSI – The RSI is above the 50 level, which is a sign that the recent move was strong in Ethereum price.

Intraday Support Level – $4.00

Intraday Resistance Level – $4.55-60

Charts courtesy of Kraken via Trading View