Ethereum Price Analysis: ETH/USD Approaching Break
|Ether traded in a range below $340.00 and is preparing for the next break against the US dollar.|
|A major resistance at $335.00-340.00 (previous support) is protecting an upside break on the 4-hour chart of ETH/USD.|
|ETH/BTC is consolidating above 0.072BTC with no major sign of upward momentum.|
Technically, the 4-hour chart indicators are flat and struggling to gain momentum in the bullish territory.
Ether Price Awaits Catalyst
Yesterday, we discussed how ETH/USD is facing difficulties in surpassing $340.00. The pair failed to move above that mark and traded within range. ETH/BTC was almost flat with no substantial move above 0.072BTC.
Looking at the 2-hour chart of ETH/USD, there are three important points to note. First, the pair was rejected from the $275.00 level and moved back into the bullish zone. Second, there was a break above a bearish trendline at $330.00, which is a positive sign.
Finally, there is a crucial resistance in place near $335.00-340.00. The stated $340.00 level was a support earlier and is now preventing an upside break.
Moreover, the $335.00-336.00 levels are near the 50 percent Fibonacci retracement level of the last drop from the $395.41 high to $275.82 low.
Therefore, only a proper close above the $340.00 resistance would open the doors for a retest of $375.00. Moving on to the hourly chart of ETH/USD, there are two bullish trendlines with support near $330.00.
The mentioned $330.00 support is a short-term break point for Ether. If sellers manage to push the price below $330.00, there can be an extension of the current correction towards the 50 percent Fibonacci retracement level of the last wave from the $275.82 low to $341.68 high around $308.00.
On the upside, there is a connecting bearish trendline at $335.00. Should Ether’s price extend beyond $335.00, there is scope to test $340.00. $375.00 is the next possible bullish target.
To sum up, a key support comes at $330.00. Only below this last, ETH/USD bullish pressure will ease in the short term.