Technically, the 4-hour chart indicators remain elevated in bullish territory.
Ether Price Remains Supported
The past three sessions were very bullish for ETH/USD as the pair was able to move above the $360.00 level. A new monthly high was formed at $371.00 before a short-term correction was initiated.
Looking at the hourly chart of ETH/USD, there were back-to-back bullish candles which pushed the pair above the $370.00 level. Later, buyers struggled to retain momentum and the pair corrected below the 23.6 Fibonacci retracement level of the last wave from the $325.39 low to $371.00 high.
However, the downside move was protected by a crucial bullish trendline with current support at $355.00. There was a test of the 50 Fibonacci retracement level of the last wave from the $325.39 low to $371.00 high.
It seems like Ether completed a short-term correction near $348.00-350.00 and is currently following the trendline closely. On the upside, there is a connecting bearish trendline forming with resistance at $362.00.
A successful close above $362.00 would mean that the stated correction is over and Ether’s price will most likely resume its uptrend above $365.00 in the near term.
Should there be a break of the $355.00 support, the price could test the $340.00 support area and the 61.8 Fibonacci retracement level of the last wave from the $325.39 low to $371.00 high.
The 4-hour chart of ETH/USD shows the importance of the $340.00 support area. There is a bullish trendline with horizontal support near $340.00.
Therefore, any major dips from the current levels are likely to find buyers near $340.00. The overall trend remains bullish with resistances near $362.00 and $371.00.