Technically, the 2-hour chart indicators are back in the bullish territory.
ETH/USD is Showing Positive Signs
ETH/USD recently initiated a downward correction. The pair traded below $850.00, but it found support just below $840.00 and recovered nicely.
On the flip side, ETH/BTC is trading in a bearish zone and is currently consolidating around the 0.0750BTC level. It must remain above the stated 0.0750BTC level to recover in the short term.
Looking at the 2-hour chart of ETH/USD, there was a five-wave structure that completed at $838.76. The pair then traded above the 23.6 percent Fibonacci retracement level of the last decline from the $894.91 high to $838.76 low.
More importantly, there was a break above a crucial channel resistance at $860.00 on the same chart, which suggests that the pair completed a downward correction at $838.76.
At the moment, Ether’s price is facing resistance around the 50 percent Fibonacci retracement level of the last decline from the $894.91 high to $838.76 low. It is currently trading in a range below the $865.00 and $870.00 resistance levels.
Should there be a break above the $870.00 resistance, the price may perhaps retest the $890.00 level. Dropping down to the 30-minute chart of ETH/USD, there was a decent upward wave before the price started trading in a range.
A range pattern is forming with support at $860.00 and resistance at $870.00. A break on either side could trigger the next move. Above $870.00, Ether will most likely test $890.00. On the other hand, a failure to hold the $860.00 support may perhaps initiate a fresh downward trend toward $840.00.