Technically, the hourly chart indicators are correcting the overbought levels with a strong bullish bias.
Ether Price Remains Supported
Yesterday, we saw a strong bounce in Ether’s price against the US dollar as it moved past a crucial resistance area at $210.00.
Recently, there was a correction from yesterday’s $224.35 high towards $210.00. The ETH/USD pair found support near $210.00 and the 23.6 percent Fibonacci retracement level of the recent rise from the $177.99 low to $224.35 high.
Later, the pair resumed its uptrend and moved above the $224.35 high. A new monthly high was formed at $232.65 before the pair started a downside correction.
A connecting resistance trendline on the hourly chart prevented gains above $232.00. The pair is moving towards the $220.00-218.00 levels which are near a short-term bullish trendline.
The trendline support at $220.00 is a decent hurdle for sellers since it is near the 23.6 percent Fibonacci retracement level of the last leg from the $189.96 low to $232.65 high. If $220.00 fails to hold the downside, the next major support sits at $210.00 (previous resistance now support).
Moving on to the 4-hour chart, the ETH/USD pair is facing another tough challenge at $232.00-235.00. The recent failure points the importance of $232.00-235.00 resistance zone before a test of $250.00.
On the downside, the most crucial support sits at $210.00 and $190.00. As long as the pair is above these supports, it would continue to gain momentum for further upsides towards $240.00 or $250.00.
The short-to-medium term technical pattern is now turning largely positive for ETH/USD. Ether strength is equally shown against bitcoin, which traded at a monthly high at 0.0847BTC.
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