Technically, the 2-hour chart indicators are reaching the overbought levels in the bullish territory.
Ether Price to Continue Higher
In the weekly forecast and the past few analyses, we discussed how ETH/USD is preparing for an upside move toward $380.00 and $400.00. The pair did move higher during the past two sessions and traded above the $400.00 level.
More importantly, the ETH/BTC pair also gained momentum and was able to move above 0.0480BTC. It will most likely continue higher toward 0.050BTC in the near term.
Starting with the 2-hour chart of ETH/USD, the pair made a nice upside and broke a crucial connecting resistance trendline at $385.00. It cleared the path for more gains toward $400.00 and the pair traded above the $400.00 resistance.
The last 2-hour candle is very bullish and suggests that the recent upside break above $385.00 is not false. Therefore, Ether’s price will most likely continue moving higher above $400.00. The next stop could be a new all-time high above $420.00.
The same broken resistance trendline may now act as a support around $385.00 if the price corrects lower. Below $385.00, there is a bullish trendline with support at $372.00 on the same chart.
Dropping down to the 30-minue chart of ETH/USD, there is a short-term bullish trendline with horizontal support is forming at $384.00. Therefore, it seems like there is a good support forming near $385.00-384.00.
Should ETH/USD correct lower towards the mentioned $385.00 support, buyers are likely to protect a downside break. On the upside, Ether could gain momentum above $400.00 towards $420.00 or even $440.00 during the coming sessions.