Ether is slowly moving higher against the US dollar and bitcoin. ETH/USD is likely to climb further toward the $420.00 resistance and it could even break it.
Ether’s price is in a consolidation phase above the $365.00 support against the US dollar.
ETH/USD broke a key bearish trendline with resistance at $385.00 on the 12-hour chart.
ETH/BTC is trading in a range near the 0.0550BTC pivot with a few positive signs.
Technically, the 12-hour chart indicators are showing consolidation signs with a major bullish divergence.
ETH/USD to Recover Soon?
This past week, there was a major downside reaction in ETH/USD, but the pair held the $360.00-365.00 support area. Later, it started an upward move and traded above a main resistance at $380.00.
Likewise, ETH/BTC was under a bearish pressure and traded below 0.0540BTC. Later, the pair recovered, traded above 0.0550BTC, and is currently consolidating in a tight range for the next move.
Let’s start with the 12-hour chart of ETH/USD to understand the current technical structure and the importance of $365.00 support. The pair started a five-wave decline from well above the $850.00 level and it likely completed the fifth wave near the $360.00 level.
A significant support base was formed around the $360.00-365.00 levels and the pair started consolidating in the range of $365.00-420.00. Recently, Ether traded higher and broke a key bearish trendline with resistance at $385.00 on the same chart.
Therefore, the price could continue to grind higher toward the range resistance at $420.00. The next resistance is close to the 23.6 percent Fibonacci retracement level of the last decline from the $868.59 high to $359.33 low at $475.00.
However, the most important hurdle for a trend change awaits at $500.00. Dropping down to the 2-hour chart of ETH/USD, the pair broke a connecting bearish trendline at $382.00 to start a decent upward wave toward $400.00 and $420.00.
The pair is currently testing the 50 percent Fibonacci retracement level of the recent drop from the $419.38 high to $363.68 low. A successful 2-hour close above $390.00 and $400.00 could open the doors for a push toward $420.00.
Overall, the technical structure is positive in the short term above $380.00. In the medium term, Ether’s price must clear the $420.00 resistance to initiate a fresh bullish trend.
Weekly Resistance Levels
$400.00 and $420.00
Weekly Support Levels
$365.00 and $360.00
The RSI has recovered and is currently near the 40 level.
The MACD is about to move in the bullish zone.
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial markets
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