ETH/USD Forecast: Bounce or Bottom?
|Ether averted a daily close below $300.00 against the US dollar and bounced sharply.|
|ETH/USD is approaching a major resistance zone near $340.00-350.00 on the 6-hour chart.|
|ETH/BTC started correcting higher and recently moved above a short-term resistance of 0.072BTC.|
Technically, the 6-hour chart indicators are back in the bullish territory and moving higher.
Ether Price Recovery Looks Real
Yesterday, we discussed why it is important for ETH/USD to avoid a daily close below the $305.00 level. The pair succeeded in closing above $305.00 and gained bullish momentum during the past 2-3 sessions.
The ETH/BTC pair was also able to gain bids near 0.070BTC and started correcting higher towards the next important resistance at 0.075BTC.
Looking at the daily chart of ETH/USD, the current candle seems to be a picture perfect reversal signal. If the candle closes with a long tail and substantial body, it would be a sign of further gains in the near term.
The trendline support at $300.00-305.00 held the drop very well and might continue to play a crucial role during the coming days.
The 6-hour chart of ETH/USD points to a short-term bottom near $275.82. The last three candles are bullish and signaling a positive bias. The pair has already cleared the 38.2 percent Fibonacci retracement level of the last drop from the $395.41 high to $275.82 low.
However, the pair is approaching a major resistance near $340.00. The 50 percent Fibonacci retracement level of the last drop from the $395.41 high to $275.82 low is sitting below the stated level. Therefore, it won’t be easy for buyers to clear $340.00 in one attempt.
A break above $340.00 would favor an extension to the $350.00 region. On the other hand, an immediate support is at $320.00, followed by the $305.00 pivot.
The overall bias is bullish and any setbacks from the current levels remain supported on the downside as long as Ether’s price is above $305.00.