Technically, the 4-hour chart indicators are in extreme overbought conditions, signaling a short-term correction.
Can Ether Price Test $70?
Yesterday, I mentioned that ETH/USD pair may rise above $60.00, and then later consolidate near $60.00-62.00. The pair did move above the $60.00 level, but the bullish momentum was such that there was no pullback or correction from $62.00.
The pair then surged higher and broke the $62.00 and $65.00 resistance levels (Fib extension levels) on the way up. A new all-time high was formed at $68.21.
The hourly chart of ETH/USD suggests a 5-wave rising pattern, and if it’s valid, there is a chance that the price completed the pattern at $68.21. In the mentioned case, there can be a very short-term correction before the price could resume uptrend.
An initial support on the downside is at $65.00. There is a major bullish trend line formed with support at $64.00, which also represents a swing low and the 23.6% Fibonacci retracement level of the last wave from the $58.00 low to $68.00 high.
So, if the price corrects lower, the $65.00-64.00 support zone may hold the downside. Below $64.00, the next crucial support is at $62.00. It coincides with the 38.2% Fibonacci retracement level of the last wave from the $54.00 low to $68.00 high.
The 4-hour chart of ETH/USD highlights a clear bullish trend with no or less chances of a pullback. However, it is about to complete 11 bullish candles, which should be treated with caution.
Overall, the price may corrects a few points towards $65.00 or $64.00, but the overall trend remains bullish for the next couple of sessions with a chance of ETH/USD testing $70.00.