Technically, the 4-hour chart indicators remain in the bullish territory and are moving higher.
ETH/USD to Settle Above $800?
A substantial correction was initiated in ETH/USD from the $867.75 high. It traded below the $800.00 and $740.00 support levels before finding strong buying interest above $710.00.
On the other hand, ETH/BTC succeeded in holding yesterday’s gains above 0.0400BTC. It has moved above the 0.0450BTC level and is currently trading in the positive zone.
Looking at the 4-hour chart of ETH/USD, there is a crucial ascending channel forming with current support at $740.00. The recent downside was protected by the channel support above $710.00, and it seems like the pair is preparing for an upside move toward $840.00.
However, Ether buyers need to make sure that the price stays above the $780.00 and $740.00 support levels. Looking at the hourly chart of ETH/USD, the pair traded above the 50 percent Fibonacci retracement level of the last decline from the $867.75 high to $711.26 low.
The pair is about to settle above a bearish trendline with resistance at $800.00. A successful hourly close above $800.00 would be a great signal of further gains in Ether’s price toward $840.00 and $850.00.
An intermediate resistance is around $810.00, the 61.8 percent Fibonacci retracement level of the last decline from the $867.75 high to $711.26 low.
On the downside, the $780.00 level is an initial support followed by the 4-hour chart channel support at $740.00. Below this last support, Ether would most likely test the $700.00 handle.
The overall trend is bullish above $740.00 and ETH/USD could accelerate to $850.00 in the near term.