Technically, the 2-hour chart indicators are back in bullish territory.
ETH/USD is Facing Important Resistance
There was bullish price action during the past three sessions in ETH/USD. The pair is currently trading well above the $850.00 support level, yet faces various levels of resistances.
ETH/BTC failed to move above the 0.0850BTC resistance as it currently trades near the 0.0840BTC level. It seems like there can be another downside push before the pair attempts to trade above 0.0850BTC.
Looking at the 2-hour chart of ETH/USD, a solid support formed near $780.00 to help the pair recover. The pair is now forming a bullish structure just above the $850.00 level.
However, there is a major resistance zone forming near $875.00. Two bearish trendlines are positioned around the $870.00-875.00 region as well, which could prevent an upside break. Moreover, the 50 percent Fibonacci retracement level of the last drop, from the $981.64 high to $788.16 low, awaits near $885.00 as a significant resistance.
Above $885.00, the $910.00 level could serve as ceiling for this current wave. Moving down to the 30-minute chart of ETH/USD, there are many positive signs emerging, which get supported on the downside at $850.00.
There is a contracting triangle pattern forming with resistance at $875.00 and support at $848.00. Ether’s price may perhaps trade in the $848-00-875.00 range before it makes the next move.
A successful close above the $875.00 resistance could lift market sentiment. In the stated case, ETH/USD could even surpass the $910.00 resistance. On the flip side, a failure to break the $875.00 resistance in the next few sessions will most likely push the price below $850.00.