Technically, the 2-hour chart indicators are back in the bullish territory with a lot of positive signs.
The ETH/USD Bounce is Real
Yesterday, there was a major downside reaction in ETH/USD as the pair tumbled by more than $200.00 toward $1,000.00. It traded as low as $966.65 but then recovered sharply.
More importantly, ETH/BTC gained a lot of bullish momentum and traded above the 0.0750BTC and 0.0800BTC resistance levels. There can be a downside correction in the short term, but the overall market sentiment is very positive.
Let’s start with the 2-hour chart of ETH/USD, which suggests a major rejection from the $950.00-960.00 area. It seems like there was a false break below the $1,000.00 level and a bullish trendline with current support at $1,080.00.
The recovery was very strong and the pair even succeeded in trading above the previous high above $1,220.00. It traded to a new all-time high at $1,247.80 and is currently showing many bullish signs.
On the upside, there is a connecting trendline forming with resistance at $1,250.00. A successful close above the trendline resistance could open the door for more upsides toward $1,300.00 or even higher.
Dropping down to the 30-minute chart of ETH/USD, the pair started a new short-term downside correction from $1,247.80. It moved below the 23.6 percent Fibonacci retracement level of the last wave from the $966.65 low to $1,247.80 high.
There was also a break below a bullish pattern with support at $1,200.00. It seems like Ether’s price will most likely correct further before resuming its uptrend. On the downside, important supports are at $1,100.00 and $1,080.00.