Ether started a decent recovery against the US dollar and bitcoin. ETH/USD could correct further higher toward the $450.00 resistance zone.
Ether’s price started an upward correction after trading as low as $365.14 against the US dollar.
There is a crucial resistance formed around the $450.00 level on the 4-hour chart of ETH/USD.
ETH/BTC recovered further and is currently approaching the 0.0600BTC resistance.
Technically, the 4-hour chart indicators are moving higher in the bearish territory.
ETH/USD Could Test $450
After a major decline, ETH/USD found support near the $365.00 level. The pair started an upward correction and it is currently trading well above the $365.14 low.
Similarly, ETH/BTC is gaining bullish momentum toward the 0.0600BTC level. The pair is now positioned nicely above the 0.0550BTC level, suggesting a positive trend formation from the 0.0500BTC level.
When looking at the hourly chart of ETH/USD, we can clearly see that a decent support base formed above $365.00. The pair then moved higher and broke the 23.6 percent Fibonacci retracement level of the last decline from the $465.29 swing high to $365.14 low.
Moreover, there was a break above a connecting bearish trendline with resistance at $400.00. These are positive signs and suggests that the price is stable and could move further higher.
Going forward, a proper close above the 50 percent Fibonacci retracement level of the last decline from the $465.29 swing high to $365.14 low is needed for more gains in the near term.
Looking at the 4-hour chart of ETH/USD, there is a consolidation pattern forming above the $365.00 level. Should the pair continue to move higher, it may perhaps face a strong resistance near the $450.00 level.
A successful 4-hour close above the $450.00 level would mean a major shift in the trend. On the downside, it seems like there is a solid support around the $360.00-380.00 zone.
In the short term, Ether’s price may consolidate above the $380.00 level before making an attempt to test the all-important $450.00 resistance.
Important Resistance Levels
$420.00 and $450.00
Important Support Levels
$380.00 and $365.00
The RSI is moving higher toward the 50 level with positive signs.
The MACD is showing a few recovery signs.
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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