Technically, the 4-hours chart indicators are strongly bullish, and suggesting more gains.
Ether price about to break higher?
Yesterday, Ether price traded as high as $8.89 against the US Dollar, and then started correcting lower. The recent moves in ETH/USD look corrective, and may produce a bounce sooner or later.
Looking at the hourly chart, there is a breakout pattern forming with resistance around the $8.80 level. On the downside, an initial support is at $8.20.
The highlighted breakout pattern is a triangle pattern, which is contracting and about to pave way for the next move. It is a bullish breakout pattern, looking at the formation.
On the downside, we need to keep an eye on the $8.00 support, as it is a major barrier. As long as the price is above it, there is a chance of ETH/USD extending the current bullish trend.
The stated support also coincides with the 23.6% Fibonacci retracement of the recent wave from the $5.84 low to $8.89 high. On the upside, the $8.80 resistance is key for the Ether buyers.
A break above it may call for a test of $9.00, which is the next resistance on the upside. The 4-hours chart of ETH/USD also highlights the $8.80 resistance. The price failed on more than two occasions, and was seen struggling.
However, the pattern on the H4 chart is constructive, and points a bullish break going forward. So, if you are looking to enter a buy trade, then consider it with a break above the highlighted resistance.