Technically, the hourly chart stochastic oscillator has returned to trending higher in the bullish territory.
Ether Price Back Trending Higher
The ETH/USD pair survived losses below $48, and overcame yesterday's bearish development. An improvement in buying sentiment for Ether sparked a rally in both ETH/USD and ETH/BTC.
ETH/USD traded above $50 and ETH/BTC managed to regain the 0.050BTC handle. In yesterday’s post, we saw a possible break below two major bullish trend lines with support at $50. However, there was no daily close below $50, which resulted in an upside move.
The ETH/USD pair traded higher, and was able to break the 61.8% Fibonacci retracement level of the last decline from the $52 high to $48 low. Also, it surpassed a bearish trend line at $50.00 on the hourly chart.
A new intraday high was formed at $53.71. At the moment, the price is correcting lower, and may head towards the 38.2% Fibonacci retracement level of the last wave up from $48.02 to $53.71 high.
There is also a bullish trend line on the same chart with support at $51.50. So, if the price corrects lower, it might find bids near $51.50. The most important support is now at $50 (daily pivot and psychological level).
Looking at the 4-hour chart, ETH/USD is attempting to clear a critical resistance near $53.00-$54.00. It won’t be easy to break since the pair has been trapped by a tightening wedge over the past few days.
On the downside, there is a monster trend line at $49.00-$50.00. So, it looks like the pair may soon break the highlighted wedge pattern and make the next move with the overall technical structure as bullish.