Technically, the 30-minute chart indicators are reaching the overbought levels.
Ether Price to Challenge $311 Again?
It’s a good start to the week for Ether as the price formed a short-term bottom near $292.00 against the US dollar and started an upside move.
Looking at the 30-minute chart of ETH/USD, there was a strong rejection near $292.00. The pair attempted to break this level on a few occasions, but finally buyers had the upper hand.
An upside move was initiated with the break of a bearish trendline at $295.00 on the same chart. It opened the gates for buyers to take charge and the price moved above the 50 percent Fibonacci retracement level of the last decline from the $307.59 high to $292.11 low.
There were more than ten back-to-back bullish candles and Ether’s price comfortably broke the $300.00 resistance to trade to a new weekly high at $303.65.
It seems like the 76.4 percent Fibonacci retracement level of the last decline from the $307.59 high to $292.11 low near $303.80 is acting as a hurdle for further gains. Moreover, the technical indicators on the 30-minute chart are heading into the overbought zone, which suggests that the price might correct a few points in the short term.
An initial support on the downside is at $300.00 followed by the broken resistance at $295.00. Moving on to the 2-hour chart of ETH/USD, there was a break above a contracting triangle with resistance at $293.00.
The current 2-hour candle is very bullish and is pointing to further gains toward $307.00 or even $311.00. The short-term trend is now bullish and the price action suggests more upsides toward $311.00 as long as Ether is above $295.00.