Technically, the 2-hour chart indicators are retreating from extreme overbought levels.
Ether Price Forming Strong Bullish Trend
ETH/USD is building on overnight bullish momentum as the pair posted yet another monthly high of $390.75. The ETH/BTC pair followed Ether’s bullish trajectory and traded towards 0.085BTC before retreating a few points.
The 2-hour chart of ETH/USD clearly points to a strong bullish trend with back to back 11 bullish candles. The pair traded as high as $390.75 before forming a short-term top.
It now seems like the pair has started correcting lower, with an initial support around the 23.6 percent Fibonacci retracement level of the last wave from the $335.51 low to $390.75 high.
There is strong support forming near $365.00, with the help of a bullish trendline and a broken resistance trendline. Below $365.00, the 50 percent Fibonacci retracement level of the last wave from the $335.51 low to $390.75 high sits at $362.00.
Therefore, any major downside in ETH/USD seems limited short-term, as in the 2-hour chart, the pair is holding a bullish 21 SMA. Moving on to the 6-hour chart of ETH/USD, the pair clearly gained solid momentum once it broke the $350.00 resistance.
The mentioned $350.00 is now a strong support along with a bullish trendline on the same chart, which if broken, could make Ether susceptible to a drop to towards another bullish trendline near $325.00.
To sum up, ETH/USD remains in an uptrend above $250.00. A rise above the recent swing high of $390.75 should now assist the pair surpass the key $400.00 psychological mark and head towards testing the all-time near $414.00.