Technically, the 4-hour chart indicators have recovered well and approaching midlines.
Can Ether Price Make it?
The last 2-3 sessions were great for Ether as the price bounced back sharply after trading as low as $133.79 against the US dollar.
Starting with the 4-hour chart of ETH/USD, there was a break above a short-term bearish trend line at $170.00. The pair recently gained pace to trade above $180.00 and the last 8 candles clearly point to an improvement in the bullish sentiment.
The pair settled above the 23.6 percent Fibonacci retracement level of the last decline from the $318.00 high to $133.79 low which is another positive sign.
However, there is a crucial resistance near a long-term bearish trend line near $200.00 on the same chart. Considering the importance of $200.00 handle as a psychological level, a break above it won’t be easy.
In the weekly forecast, we analyzed a major declining wedge pattern with resistance at $205.00 on the daily chart. The pair bounced perfectly from the wedge support at $135.00-140.00 and is currently approaching its resistance.
The wedge resistance near $200.00-205.00 is a significant barrier for further upsides in ETH/USD. The $200.00 resistance is also the 38.2 percent Fibonacci retracement level of the last decline from the $318.00 high to $133.79 low.
A successful daily close above the wedge resistance is needed for Ether buyers to remain in control. If there is a failure to move past $205.00, the price may resume its downward trend back towards $160.00-150.00.
The recent attack on highs near $190.00, coupled with the recent acceleration of ETH/USD rally has raised hopes of an upside break. Having said that, it won’t be easy and we can still see a pullback towards $175.00 or $160.00 in the near term. On the other hand, a close above $205.00 could take Ether’s price towards $240.00.