Technically, Last week was relatively positive for ETHUSD as the pair rose steadily. This week can be very interesting as there are chances of a new high.
Buying Paid Off In ETH/USD
In the weekly analysis post, I mentioned that Ether price may correct further lower and then regain bullish bias against the US Dollar. The ETH/USD pair did complete a correction structure near $12.25, and started to trade higher once again.
Looking at the 4-hours chart of the ETH/USD, there is an ascending channel pattern forming. It was one of the main reasons why the pair managed to find support. There are two back to back bullish candles formed on the same chart, suggesting a possible rejection around the trend line support.
It looks like the pair may continue to trade higher and could even challenge the channel resistance trend line where it could face offers.
In the short term, the pair is facing a resistance in the form of a bearish trend line on the hourly chart (yellow). Moreover, the same trend line coincides with the 50% Fib retracement level of the last drop from the $14.92 high to $12.25 low, acting as a hurdle for the bulls.
A break above the trend line resistance might open the gates for more gains in ETH/USD. I think one may even consider buying with a break with a stop below the recent low.