Technically, the indicators on the hourly chart are strongly bullish, calling for more gains.
Yesterday, we analyzed the possibility of further gains in Ether price against the US Dollar and Bitcoin. The ETH/USD pair made a nice upside move, breaking the last swing high of $8.19.
A new weekly high was formed near $8.55, as the price even managed to surpass the $8.50 resistance. It looks like the ETH/USD pair is struggling to successfully close above the $8.50 level.
So, there is a chance of a correction in the short term. An initial support on the downside is around a bullish trend line on the hourly chart at $8.40. A break below the stated level may call for a test of the 23.6% Fib retracement level of the last wave from the $7.04 low to $8.55 high.
However, the most important support on the downside is around $8.00. It may stop the downside corrective move if the pair dips further from the current levels. The stated level also represents the 38.2% Fib retracement level of the last wave from the $7.04 low to $8.55 high.
When we look at the 4-hour chart of ETH/USD, there is a clear support base formed near $8.00. So, we must keep a close eye on the mentioned support area if there is a correction.
On the upside, a successful H4 close above $8.50 might call for a push towards the $8.80 level, which is the next important resistance.