Technically, the 6-hour chart indicators are about to move into bullish territory.
Ether Price Analysis (ETH)
Yesterday, we saw a crucial range pattern with support near $136.00 and $135.00. The pair failed to gain momentum above the $140.00 resistance and declined sharply. However, the $132.00 support acted as a strong barrier, resulting in a significant reversal above $135.00.
ETH/BTC struggled and declined below the 0.0350BTC support level. The pair is currently under pressure, and it seems like it could continue to move down toward the 0.0345BTC support level.
Starting with the hourly chart of ETH/USD, the pair failed to climb above the $140.00 resistance and declined sharply. Sellers pushed the price below the $136.00 and $135.00 support levels, with back-to-back strong red candles.
However, Ether buyers protected the $132.00 support and the price bounced sharply above the $135.00 level after forming a low at $131.35. The recent bounce was significant as the price settled above $136.00 and the 61.8 percent Fibonacci retracement level of the decline from the $140.00 swing high to $131.35 low.
To the upside, a crucial bearish trendline, with current resistance at $139.00 is acting as a barrier for buyers. Should Ether break above the trendline and the $140.00 resistance, there could be strong upward move.
The 6-hour chart of ETH/USD suggests that the pair might be forming an inverse head-and-shoulders pattern, with the neckline resistance at $140.00. Therefore, a successful close above $140.00 could accelerate gains in the near term.
The current price action is positive; Ether is likely to climb above $139.00 and $140.00 as long as the price is above the $135.00 support level.