Technically, the hourly chart indicators changed direction, and at the moment positioned in the bullish zone.
Ether Attempts to Overcome Selling Pressure
There was a major decline in Ether price yesterday, taking it towards $6.00 against the US dollar and below 0.010BTC versus the Bitcoin. However, the price later found support and started a recovery.
In yesterday’s analysis, I mentioned that the $6.00 support is the key for ETH/USD, and it must hold the downside move. It did act as a crucial barrier for further losses and pushed the pair higher. The stated support represents a major monthly pivot, which is why it won’t be easy to break.
During the recent upside move, the price broke a couple of intermediate resistances. First, the 61.8% Fibonacci retracement level of the last decline from the $8.10 high to $5.84 low was cleared. Second, a bearish trend line on the hourly chart at $7.10 was broken.
All these breaks opened the doors for further upside in ETH/USD. The pair traded as high as $7.94 where it found resistance, and started correcting lower. It is currently trading near the 23.6% Fibonacci retracement level of the recent wave from the $5.84 low to $7.94 high, which is acting as a support near $7.50-40.
There is a chance of a pullback towards the $7.00 level, which may act as good support for ETH/USD. Looking at the 4-hours chart, it looks like the pair is trading near a major juncture.
There is a monster bearish trend line, and the pair is attempting a close above it. If it succeeds, there can be more gains else the pair might trade lower towards $7.00.