ETH/USD Forecast: Ether Gaining Momentum
|Ether gained traction during the past few hours and traded above $225.00 against the US Dollar.|
|The ETH/USD pair broke a couple of key resistances such as $221.00 and $225.00 on the 30-min chart.|
|ETH/BTC extended its correction due to a sharp rise in Bitcoin price against most major cryptocurrencies.|
Technically, the 30-min chart indicators are rising sharply in the bullish territory.
Ether Price Breaks Key Resistance
In yesterday’s analysis, we discussed how ETH/USD is approaching a crucial break. The pair was able to gain bids during the past few hours and after retesting the $220.00 support climbed higher sharply.
On the other hand, the ETH/BTC pair was down by more than more 10% towards 0.072BTC mostly due to increase in buying interest for Bitcoins.
Let’s start with the 30-min chart of ETH/USD that clearly shows a couple of key resistance breaks. Recently, the pair tested a major support area of $220.00 to fill buy orders and surged higher.
During the upside move, there was a break above two important bearish trend lines near $221.00. It cleared the path for more gains, and the pair was able to move past another crucial hurdle at $225.00.
The last three candles poin to a sharp increase in buyer’s strength, which could result in further upsides in the near term. The broken resistance at $225.00 may now act as a support.
Moving on to the 2-hour chart of ETH/USD, the pair seems to be attempting a close above a significant contracting triangle at $225.00. If there is an H2 close above $225.00, it would signal a major upside break.
The current candle is pretty bullish and most likely to close above $225.00. On the upside, the next resistance sits at $232.65 (August 2017 high), followed by the all-important $250.00.
To sum up, if the recent rise gains pace we can look for a run towards $240.00 and $250.00. On the downside, the $225.00 and $220.00 levels are decent supports in the short term.