Technically, the 2-hour chart indicators are correcting lower in the bullish territory.
Ether's Price is Testing a Key Support
In the weekly forecast, we discussed ETH/USD's move above the $1,200.00 level. The pair did gain traction and it was able to surpass the $1,180.00 and $1,200.00 resistances.
More importantly, there was a solid upside move in ETH/BTC. As a result, the pair was able to trade above the 0.1000BTC resistance level. It opened the doors for more upsides and pushed the pair past 0.1050BTC.
It seems like Ether buyers are in control and, looking at the 2-hour chart of ETH/USD, the pair is in a clear uptrend. It recently traded as high as $1,238.92 before starting a downside correction.
It traded below the 23.6 percent Fibonacci retracement level of the last upside wave from the $986.85 low to $1,238.92 high. However, the downside move was protected by a major bullish trendline with support at $1,150.00-1,160.00 on the same chart.
Below the trendline, the previous resistance at $1,100.00 could act as a strong support. Looking at the 30-minute chart of ETH/USD, the pair seems to be well supported above the $1,150.00 level.
On the upside, there were two rejections around the $1,235.00 level, a break above which is needed for further gains.
Overall, the current price structure is positive as long as ETH/USD is above $1,100.00. In the short-term, the pair may range between $1,100.00-1,230.00 before Ether’s price makes the next move.