Ether Price Poised To Keep Advancing
|The $18.20 level acted as a support one more time, and pushed the ETH/USD pair higher.|
|Ether price is now back above the $19.10 resistance and looking to extend gains.|
|On the upside, the $20.00 handle remains a major resistance, which is likely to dent the current momentum.|
Technically, the hourly indicators are supportive of further upsides in the near term.
Can ETH/USD Break $20 Again?
Ether closed on Sunday on a positive note against the US Dollar and Bitcoin. There was another attempt to break the $18.20 and $18.00 support area in ETH/USD recently, but sellers failed to gain pace.
As a result, the pair started moving higher once again, and currently trading above the $19.10 support area. Before the price started recovering, it completed the last wave of the three-wave pattern on the hourly chart at $18.11.
The chart highlights the importance of the $18.20-18.10 support area. There were 2-3 rejections, which means the price is forming a consolidation base above $18.00. It is already moving higher, and following an ascending channel pattern.
The price is currently above the 50% Fibonacci retracement level of the last decline from the $19.94 high to $18.11 low, which is a positive sign. So, the price may continue to move higher.
The most important resistance is near the $20.00 psychological level. It might once again play a critical role. If the price fails to settle above $20.00, it could give sellers a reason to attempt a downside ride.
An initial support on the downside is near the channel lower trend line at $19.00. A break below it could expose another test of $18.20.
Looking at the 4-hour chart, it is clear that Ether price is forming a support base above $18.00. So, the upside move might continue in the near term towards $20.00.
In my view, the last three-wave pattern was not a perfect formation, which means the price could extend the correction and may form a five-wave correction pattern with support near $18.00.