Technically, the 2-hour chart indicators are back above their midlines in the bullish territory.
ETH/USD Recovery Looks Real
Yesterday, we discussed how ETH/USD was holding ground above the $400.00-405.00 support area. Later, the pair started an upside recovery and was able to move above the $430.00 and $440.00 resistance levels.
More importantly, ETH/BTC found strong buying interest near 0.0240BTC and started an upside move towards 0.030BTC. However, it needs to break the 0.030BTC resistance to overcome selling pressure.
Starting with the 2-hour chart of ETH/USD, there was a brief consolidation above the $400.00 support. The pair formed a base and started an upside move with a break of a major bearish trendline with resistance at $424.00.
Ether also succeeded in breaking the 50 percent Fibonacci retracement level of the last decline from the $481.24 high to $406.96 low. These are positive signs, but buyers are facing many hurdles on the upsides such as $450.00 and $470.00.
Furthermore, the 61.8 percent Fibonacci retracement level of the last decline from the $481.24 high to $406.96 low is around $452.00.
Looking at the 6-hour chart of ETH/USD, the pair is forming a bullish pattern from the $400.00-405.00 support region. Should the current momentum remain intact and the price break $450.00, there could be an upside drift toward the range resistance at $475.00-480.00.
Overall, the price action is bullish according to the 6-hour chart, as ETH/USD surpassed its 20 SMA. There can be a minor pullback from the $450.00 resistance, but as long as the $405.00 support is intact Ether’s price will most likely gain further.