ETH/USD Seen Recovering, But Within Range
|Ether price ended 2016 above the $8.00 support against the US Dollar, and with a slight bullish bias.|
|There is a bullish trend line formed on the 30-min chart of ETH/USD, which is currently acting as a support above $8.00.|
|The 2-hour chart points a range pattern with resistance near $8.55, and support at $8.00.|
Technically, the indicators on the 2-hour chart almost flat with neutral bias.
Ether Price Holding the $8.50-55 Support
It was an eventful year for the Ether. There were many swing moves in its price against the US Dollar and Bitcoin. We saw ETH/USD moving above $15, and then dipping below $7, and finally closing the year above $8.00.
There was no yearly close above $10.00. The best part is the fact that the $8.00 level now becomes the yearly pivot zone, and a major support. As long as the price is above it, there are chances of further gains.
Considering the 30-min chart, there is a bullish trend line formed, acting as a support on the downside. It is currently preventing a downside break below the all-important $8.00 support area.
On the upside, there is a resistance trend line, acting as a barrier for a push higher at $8.20. The stated level also coincides with the 38.2% Fib retracement level of the last decline from the $8.55 high to $7.93 low.
So, if there is a close above the highlighted resistance trend line and the $8.20 level, there can be a push towards the 61.8% Fib retracement level of the last decline from the $8.55 high to $7.93 low around $8.40.
The 2-hour chart of ETH/USD clearly points a range pattern with a monster support at $8.00. There are many rejections around the stated support, which means it holds a lot of value.
On the upside, the $8.50-55 area is a breakout resistance. Going forward, we can witness a move towards $8.50 where the Ether buyers might be tested.