Technically, the hourly chart indicators are slowing correcting overbought readings.
Ether Price Bullish above $200.00
The ETH/USD pair saw little action overnight, remaining confined to the $220.00-230.00 range. There was a moderate advance above yesterday’s high ($231.26), but with limited gains (a new all-time high was formed at $233.34).
The hourly chart suggests a short-term consolidation above $220.00, and traders seem to be getting ready for the next move.
There is a contracting triangle forming with support near $222.00, and resistance at $234.00. Below $222.00, a major horizontal support exists at $218.00. However, the most important support is around a bullish trend line at $211.00 on the same chart.
Should there be a short-term correction, the pair is likely to hold the $220.00-212.00 support area. The $212.00 level also coincides with the 50% Fibonacci retracement level of the last wave from the 119.00 low to $233.00 high.
Ether buyers would need to push the price above $234.00 (triangle resistance) for a test of $240.00-245.00 mark. Looking at the 4-hour chart of ETH/USD, there is an important ascending channel pattern forming with support at $215.00-220.00.
The channel holds the key for the current bullish trend. Furthermore, there are two horizontal supports on the downside at $210.00 and $175.00-180.00. These supports are crucial buy zones and are likely to prevent declines.
While ETH/USD outlook remains stable, the strong up-move over the past 2-3 days has improved the undertone considerably above $200.00.
That being said, Ether price has to register a break above $240.00-245.00 (a major technical extension and resistance) to indicate the next major bullish leg. In the short-term, the price may continue to slowly grind higher towards $240.00 with supports on the downside at $215.00 and $210.00.