ETH is trading with a bullish sentiment at the moment, but a fact cannot be ignored that it is facing a crucial resistance on the upside.
Ether Price Crucial Test?
Yesterday, I highlighted a trend line support for Ether price, and was hoping for a break or a bounce. My idea was more of a sell, but the price bounced and moved higher. It was more due the price action in BTC/USD, which is facing a tough resistance near $600. So, ETH/BTC was benefited, and managed to move a few points higher.
However, ETH is currently facing a major resistance area near the 100 simple moving average (1-hour chart), which is preventing further gains. Moreover, as we can see in the last 24H chart of ETH/USD there were two failures near 0.0240BTC. So, we can assume that it won’t be easy for the ETH bulls to take the price higher in the near term.
If we have a look at a higher timeframe chart, then the last 7-day chart of ETH/BTC is pointing towards a major move. There is a critical triangle pattern forming, which may result in the next move in the short term.
The price is currently trading near the triangle resistance trend line, which is acting as a barrier for more gains. A break above the same may be a buy call, which can take ETH towards 0.0250BTC. On the downside, the triangle support trend line can be considered as a protection zone.