Ether Price Signaling Start of Bullish Trend
|Ether price, after a false break below the $10.00 level against the US Dollar, found support and traded higher|
|Yesterday, the Ethereum Foundation finally announced a block number for the fourth hard fork: Spurious Dragon, which initiated an upside in ETH/USD.|
|The pair is now trading with positive momentum and signaling a break on the 2-hours chart|
Technically, the indicators on the 2-hours chart turned north, and signaling a start of the bullish trend.
ETH/USD Upside Break
Yesterday, there was a break below an important support area at $10.00, but it turned out to be a false break. There was no real momentum, and as a result, Ether price bounced back.
However, there was a fundamental reason, which helped Ether in gaining bids. As mentioned, the Ethereum Foundation announced the block number for their 4th hard fork: Spurious Dragon, which caught Ether buyers attention and sent the price to an upward trend.
There was a nice upside move in ETH/USD, as the pair broke a couple of short-term resistance levels to open the doors for a recovery. The pair closed above the $10.10 resistance, and also broke a bearish trend line formed on the 2-hours chart.
Furthermore, there was a move above the 23.6% Fib retracement level of the last decline from the $10.74 high to $9.86 low, which is a positive sign. The pair at the moment is consolidating above the $10.20 level, and faces a major resistance near $10.40. As can be seen from the chart, it was a support earlier, and may now act as a hurdle for an upside continuation.
Looking at the 6-hours chart of ETH/USD, it looks like the pair stopped right at a bearish trend line resistance. It is currently preventing a break, and stopping the current recovery wave. Moreover, we can also see the same $10.40 resistance, which could play a major role in the short term.
Overall, the recent break is encouraging, but Ether price faces a lot many hurdles on the way up.