Technically, and according to the daily chart, the risk is towards the upside, as the 20 moving average maintains a strong bullish slope.
Buying Favored In ETH/USD
This past week, I kept mentioning that the Ether may regain strength and trade higher against the US Dollar. Ether price did climb higher, and traded close to the $15.00 handle where sellers appeared. The bears were outpaced during the past couple of days and were seen on the back foot.
After trading as high as $14.92, the price started to correct lower. Looking at the 2-hours chart of the ETH/USD pair, it looks like the pair is stuck between a major support and resistance. On the upside, the $15.00 handle represents a crucial barrier for further gains. On the downside, the $14.00 level is providing support, which also coincides with the 23.6% Fib retracement level of the last wave from the $10.42 low to $14.92 high.
A break below the stated support level may push the price towards a bullish trend line formed on the same chart. The most important point is that the same trend line is positioned with the 38.2% Fib retracement level of the last wave from the $10.42 low to $14.92 high.
So, in my view, if the ETH/USD pair continues to correct lower, then the highlighted trend line and support area may play a major role in the near term. The ETH bulls could take a stand and ignite another upside move.
Looking at a higher time frame chart like daily, the price is clearly in an uptrend for two reasons. First, an ascending channel pattern on the daily chart of ETH/USD. Second, the 20 simple moving average, which is strongly placed with a bullish slope.
Overall, my view remains bullish as long as the price is above $13.00.