Technically, the hourly chart indicators are back in the bullish territory with a minor cross.
Ether Price Back Testing Important Resistance
Yesterday, we saw a decline of more than 8% in Ether price against the US Dollar with a new weekly low at $16.26. Later, the price was able to form a base near $16.25, and started a recovery.
The recovery was such that the price managed to regain the bullish bias. First, there was a move above yesterday’s highlighted important hurdle at $17.60. Second, the price broke a major bearish trend line on the hourly chart along with the 61.8% Fibonacci retracement level of the last decline from the $18.60 high to $16.26 low.
It resulted in an increase in the bullish bias in ETH/USD, and the pair was able to settle above the 23.6% Fibonacci retracement level of the last decline from the $20.09 high to $16.26 low.
At the moment, there is an ascending channel pattern formed with support at $17.70-17.80. It is acting as a catalyst for the current upside move. As long as the price is above the channel support area, there is a chance of further gains in ETH/USD in the near term.
The 4-hour chart of ETH/USD highlights a couple of important points. First, the recent bounce in Ether price was from the 50% Fibonacci retracement level of the last wave up from the $12.95 swing low to $20.06 high.
Second, there was an overlapping bullish candle formed before the price started moving higher. This means the recent bounce looks real.
However, the price needs to settle above $18.20 in order to gain further strength, else there can be a pullback towards $17.10.