Technically, the hourly chart indicators are in the overbought levels with no major signal of a correction.
ETH/USD Could Test $840
ETH/USD traded to a new two-month high at $827.21 recently and is currently placed nicely in a bullish trend. The pair is moving within an uptrend and remains supported on the downside above $770.00.
ETH/BTC also gained traction during the past few sessions and settled above 0.0800BTC. The current price action suggests that the pair may correct lower a few points before resuming its upward move.
Looking at the hourly chart of ETH/USD, the pair is attempting a close above the $800.00 psychological level and a short-term resistance near $802.00. A successful hourly close above $802.00 and a couple of bullish candles above the stated level could set the tone for additional gains.
Above the recent high of $814.90, the price will most likely overcome the $820.00 resistance and test the next major barrier at $840.00. Should there be further gains above this last, Ether may test the $880.00 pivot level.
On the downside, there are two important bullish trendlines with support near $770.00-780.00. Therefore, a downward correction below $800.00 may well find a strong buying interest above $770.00.
Moving up to the 6-hour chart, there was a break above a connecting resistance trendline at $760.00, which is currently acting as a support and preventing a downward move. Additionally, there is a key bullish trendline in place with support at $760.00 on the same chart.
At this point, Ether’s price rise seems a bit overstretched. However, chances are of further upsides rather than a downward correction, and pullbacks will be seen as buying opportunities.