Technically, the daily chart indicators remain elevated in the bullish territory.
ETH/USD Dips Remain Supported
This past week, there were heavy gains in ETH/USD as the pair settled above the $700.00 level. It gained momentum and broke the $800.00 resistance to post a new two-month high at $838.91.
Similarly, ETH/BTC traded higher and broke a major resistance at 0.0800BTC. The pair traded as high as 0.0845BTC before starting a downward correction. Supports are seen at 0.0800BTC and 0.0780BTC.
Let’s start with the daily chart of ETH/USD to understand the current bullish wave. The pair formed a solid support base above $600.00 and climbed higher by more than $200.00. It settled above the 76.4 percent Fibonacci retracement level of the last drop from the $894.91 high to $359.33 low, which is a positive sign.
At the outset, it seems like there is a strong support formed near $700.00 and a bullish trendline on the same chart. To the topside, the previous swing high near $890.00-895.00 may act as a key resistance.
Should buyers succeed in breaking the $895.00 resistance, the price could extend gains toward the $1,000.00 level in the near term. However, the current price action indicates an overbought condition near $838.00.
Ether’s price is currently correcting lower toward two bullish trendlines with support at $802.00 and $750.00 on the 2-hour chart of ETH/USD. The second trendline is more important because it is a pivot area.
Therefore, a downward correction could find buyers near $750.00. Below this, Ether will most likely test the all-important $700.00 support. Resistances, on the other hand, are at $820.00, $840.00, and the $895.00 region.