ETH/USD Increasingly Bullish above $180.00 - 200.00
|Finally, the ETH/USD pair was able to break an important resistance at $200.00.|
|The pair has formed a major support around $180.00, which may prevent declines if there is a correction.|
|Sharp increase in Bitcoin price pressured ETH/BTC, and the pair was down roughly 6%.|
Technically, the 4-hour chart indicators are in overbought levels, but with no sign of a major dip.
Can Ether Price Retain Momentum?
We have been waiting for Ether price to at least test $200 against the US Dollar this week. It did make an upside move, and not only tested $200.00, but also settled above it.
ETH/USD tested the 1.618 Fibonacci extension of the last drop from the $180.23 high to $136.18 low near $208 (recent new all-time high was $207.78).
The pair has already started a short-term correction from the $208.00 resistance, and tested the 23.6% Fibonacci retracement level of the last upside from the $181.38 low to $207.78 high.
There are two bullish trend lines positioned on the downside at $198.00 and $190.00 on the hourly chart. If there is an extension of the current correction, the pair may find support anywhere between $190.00 – 196.00.
However, the most significant support is at $180.00 – 182.00. The stated levels prevented upsides on many occasions and now may protect declines below $180.00.
The $180.00 level also coincided with the 38.2% Fibonacci retracement level of the last ride from the $136.81 low to $207.78 high, which adds to its value as a strong support.
Looking at the 4-hour chart, ETH/USD is positioned well to extend the current bullish wave above $180.00. On the downside, there are two bullish trend lines which are close to $180.00.
Clearly, the medium-term picture is bullish, as the positive tone keeps improving. Corrections towards $180.00 are still seen as buying opportunities, and only below $175.00, the pair may turn short-term bearish and attempt an extension up to $155.00.