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Ether was completely rejected near $200.00 against the US Dollar but turned things around. In order to maintain momentum, ETH/USD has to remain above $220.00-240.00.

Technically, the 2-hour chart indicators are back in the bullish territory.

Ether Price Formed Bottom or Correcting Higher?

There were a lot of swing moves in ETH/USD during the past few sessions. The pair was down roughly 30 percent before finding strong buying interest near $200.00.

Ether buyers succeeded in defending the $200.00 handle and prevented a complete test of the 76.4 percent Fibonacci retracement level of the last wave from the $133.79 low to $395.41 high at $194.00.

The 2-hour chart of ETH/USD is pointing to a few important bullish signs. First, a reversal candle was formed at $200.91. Second, the pair moved above the 23.6 percent Fibonacci retracement level of the recent decline from the $316.17 high to $200.91 low.

Third, there was a break above a bearish trendline at $245.00. Finally, there were three back-to-back bullish candles, suggesting an increase in buying sentiment. At the outset, Ether’s price is currently trading a few points above the 50 percent Fibonacci retracement level of the last decline from the $316.17 high to $200.91 low.

An immediate resistance rests near $265.00-270.00 (a previous support), followed by the 61.8 percent Fibonacci retracement level of the last drop from the $316.17 high to $200.91 low at $272.00.

Ethereum ETH/USD Forecast

Above $272.00, the price could test the $290.00 resistance as well as the bearish trendline at $298.00 on the 6-hour chart of ETH/USD. The last two candles on the same chart suggest an overlapping bullish reversal pattern. However, a proper close above $270.00-272.00 is required for confirmation.

On the downside, an initial support is around $240.00, followed by $220.00. To sum up, the recent bounce is encouraging, but it’s too early to call it a reversal and need to wait for a few more bullish signs.

Disclaimer:

The content on ETHNews.com is provided for informational purposes only and it is not intended to be, and does not, constitute financial advice or any other advice. You should not rely on any ETHNews.com content to make an investment decision. ETHNews.com is not responsible for any investment decision made by you. You are responsible for your own investment research and investment decisions.

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