ETH/USD Forecast: Ether Rally Unravels
|The price of Ether soared higher and broke a key resistance area near $200.00-205.00 against the US dollar.|
|There was a clear break above a monster trend line resistance at $200.00 on the 6-hour chart.|
|ETH/BTC gained more than 10% and traded towards the 0.10BTC resistance|
Technically, the 6-hour chart indicators are gaining momentum in the bullish territory.
Can Ether Price Retain Momentum?
Yesterday, we discussed the importance of a declining wedge pattern with resistance at $205.00 on the daily chart of ETH/USD. The pair was able to build on the past few sessions’ positive sentiment and was successful in breaking the $205.00 resistance.
Looking at the 6-hour chart, there was a clear break above a monster trend line resistance at $200.00. It opened the doors for more gains towards $240.00.
The pair even succeeded in breaking the 50 percent Fibonacci retracement level of the last decline from the $318.00 high to $133.79 low, which is a strong bullish sign.
There was a spike after a break above $200.00 towards $250.00 where the price faced tough resistance. The $250.00 zone was a support earlier and is now preventing gains.
Moving on to the hourly chart of ETH/USD, there are many bullish trend lines forming with supports at $225.00, $215.00 and $205.00. As long as the pair is above these trend lines and $200.00, it remains bullish.
$225.00 is a key support since it is around the 23.6 percent Fibonacci retracement level of the last leg from the 133.79 low to $256.08 high.
ETH/USD is trading at its highest level this month, having pierced the $200.00 psychological barrier on an intraday basis. This indicates that Ether has moved into a bullish phase again.
To sum up, the recent break is encouraging and points to a sustained recovery in Ether’s price. Any dips from the current levels could be seen as a short-term correction as long as $200.00 is intact.