Technically, the 2-hour chart indicators are slowly rising in the bullish territory.
$505 is Important for ETH/USD
Yesterday, we discussed an important support at $505.00, which recently acted as a barrier for ETH/USD sellers. The pair dipped from the $522.16 high, but the $500.00-505.00 area acted as a key support.
On the other hand, ETH/BTC remained range bound. However, there is an RSI divergence forming on the hourly chart, which could initiate an upward move toward 0.0650BTC during the upcoming sessions.
Looking at the 30-minute chart of ETH/USD, the pair formed an intraday high at $522.16 before dipping sharply below $510.00. However, the $500.00 and $505.00 support levels prevented declines and a low was formed at $501.46.
The pair bounced back and moved above the 50 percent Fibonacci retracement level of the last drop from the $522.16 high to $501.46 low. More importantly, there was a break above a bearish trendline at $512.00 on the same chart.
These are positive signs, suggesting that Ether’s price was rejected from the $505.00 support. On the upside, Ether faces a key resistance near $520.00 and the recent high at $522.16. A successful break above this crest could clear the path for further gains toward the next barrier of $535.00.
The 2-hour chart of ETH/USD indicates the importance of the $535.00-537.00 resistance. On the downside, there is a crucial bullish trendline forming with current support at $505.00.
Overall, the last bounce from the $505.00 support is encouraging, but Ether buyers need to gain strength to surpass the $520.00 and $535.00 hurdles.