Technically, the hourly chart indicators are positively aligned, suggesting a weakening in Ether’s downside momentum.
Ether Price Ready to Test $300?
Yesterday, we discussed the importance of the $260 support and chances of Ether bouncing back towards $280 versus the US Dollar.
The price did gain slight bullish momentum and slowly moved above $275 and $280. There are two short-term bullish trend lines forming on the hourly chart with supports as $278 and $272.
On the upside, an immediate resistance is near $285, followed by the last swing high at $291. If the trend lines continue to hold declines in ETH/USD, there are chances that the pair might trade towards $290 or even $300.
On the other hand, a break and close below the first trend line at $278 might call for a test of the second trend line at $272. There is not much scope for a sustained decline in ETH/USD as long as it stays above $270 since it is the 50 percent Fibonacci retracement level of the last wave from $250 to $291.
Looking at the 4 hours chart, there is a crucial bullish trend line forming with support at $270. It holds a lot of significance for the current bullish structure following a rise from the $209 low.
The pair recently broke a bearish trend line at $278 and attempting a close above another at $282-284. A successful close above $285 could take the pair towards $300 in the near term.
On the upside, there is a major resistance confluence area just above $300 which can be considered as the next barrier for Ether buyers. In the near term, there can be a slow rise towards $300. Above $300, buyers might struggle to sustain momentum.