Technically, the 6-hour chart indicators are rising in the bullish territory and about to hit the overbought zone.
Ether Price Gains Traction
In yesterday’s monthly forecast, we discussed the chances of Ether trading towards the $300.00 handle against the US dollar. Considering the price action of the past 2-3 sessions, it seems like the ETH/USD pair is preparing for an upside run above $270.00.
There is a short-term ascending channel forming with support at $261.00 on the 2-hour chart, causing the pair to continue surging higher. The current channel resistance is near $274.00.
The price is likely to challenge the recent high of $271.90 and could even break it to test the channel resistance at $274.00. If the rising channel stays intact for the next few sessions, there are possibilities of ETH/USD testing the $290.00-300.00 zone.
On the downside, the channel support is very important at $261.00. Should there be a close below $261.00, the price could test the 50 percent Fibonacci retracement level of the last wave from the $220.00 low to $271.90 high.
The monthly pivot at $230.00 holds the key to the current trend. As long as long there is no close below $230.00, the price remains in an uptrend.
Moving on to the 6-hour chart of ETH/USD, there is a monster bullish trend line forming with current support at $230.00. This clearly points to the significance of the $230.00 support.
The current 6-hour candle indicates indecision but is mostly bullish. In the short-to-medium term, the trend is bullish and buyers are most likely to extend gains above $270.00.