Technically, the 12-hour chart indicators are stable in the bullish territory.
Can ETH/USD Bounce Back?
Yesterday, we discussed the importance of a daily close above the $600.00 support. ETH/USD held that support and is currently showing signs of a recovery.
Similarly, downsides in ETH/BTC were limited by the 0.0680BTC support. The pair started a fresh upward wave and move back above 0.0700BTC, which is a positive sign.
To understand the current price structure and importance of the $600.00 support, let’s start with the 12-hour chart of ETH/USD. The chart indicates that a crucial bullish trendline with current support at $610.00 is holding declines very well.
As long as Ether is trading above the trendline, it could resume its uptrend toward $650.00 and $660.00. On the flip side, a break below the trendline and $600.00 will most likely push the price toward the next support at $520.00.
Moving down to the 30-minute chart of ETH/USD, the pair is forming a strong support at $600.00. It has already recovered a few points and broke a connecting bearish trendline with resistance at $626.00.
There was also a break above the 23.6 percent Fibonacci retracement level of the recent drop from the $711.49 high to $592.86 low. Should the price extend gains from the current levels, the next stop may well be $650.00.
A break above $650.00 won’t be easy since it is the 50 percent Fibonacci retracement level of the recent drop from the $711.49 high to $592.86 low. In the short term, there could be ranging activity above $610.00 before the next move either toward $650.00 or below $610.00.