Technically, the 2-hour chart indicators are currently near their midlines in the bullish territory.
Ether Price to Bounce Back Soon?
Yesterday, we discussed how ETH/USD could trade in the $1,100.00-1,230.00 range in the short term. The pair started a downside correction recently and tested the lower end of the range at $1,100.00.
On the other hand, ETH/BTC continues to gain traction. It moved above the 0.1070BTC level and it is poised for further gains in the near term.
Starting with the 6-hour chart of ETH/USD, the recent upside wave found resistance near a connecting bearish trendline at $1,240.00. The pair failed to clear the mentioned resistance and started a downside correction toward $1,100.00.
The pair recently tested the 50 percent Fibonacci retracement level of the last leg up from the $986.85 low to $1,238.92 high. On the downside, there is a significant bullish trendline forming with current support near $1,080.00-1,100.00.
The stated $1,080.00-1,100.00 support zone holds a lot of significance. Therefore, as long as Ether’s price is above $1,100.00, it remains in an uptrend.
Dropping down to the 2-hour chart, ETH/USD broke a major bullish trendline with support at $1,160.00. However, on the downside, the importance of the $1,100.00 and $1,080.00 support levels is clearly visible.
It seems like it won’t be easy for Ether sellers to push the price below $1,080.00-1,100.00. The technical picture shows that ETH/USD’s upward potential is limited as long as the pair is below $1,200.00.
An immediate resistance is at $1,160.00, with gains beyond the level favoring a continued advance toward $1,200.00. Above $1,200.00, Monday's high at $1,238.92 could be tested.