Ethereum Price Technical Analysis – Double Bottom Formation?

Ethereum price ETH climbed higher yesterday and broke the 100 hourly simple moving average to trade as high as $11.61. It found sellers and started to move down. It is important to note that the recent failure was around the 50% Fib retracement level of the last drop from the $12.20 high to $10.85 low. So, we can say it was a crucial failure, as the price failed to break a major technical level.

There is also a bearish trend line formed on the hourly chart (data feed via Kraken) of ETH/USD, which acted as a resistance and prevented the upside move. The price during the downside move settled below the 100 hourly simple moving average, which is a bearish sign.

However, there is a positive sign on the hourly chart, as there is likely a double bottom pattern forming, which can ignite a rally in the short term. An initial resistance is around the 23.6% Fib retracement level of the last drop from the $12.20 high to $10.85 low. On the downside, the most important support area is at $10.80.

 Hourly MACD – The MACD is in the bearish zone, and showing no sign of a recovery.

Hourly RSI – The RSI is around the oversold readings, which may ignite a minor correction in ETH.

Major Support Level – $10.80

Major Resistance Level – $11.16 

 Charts courtesy – SimpleFX