Ether’s price bounced back sharply against the US dollar and bitcoin. ETH/USD is likely forming a base for the next leg higher in the near term.
Ether’s price jumped sharply and moved above the $540.00 resistance against the US dollar.
ETH/USD formed a double bottom pattern at $505.00 on the 2-hour chart.
ETH/BTC is also recovering and is currently trading above 0.0740BTC.
Technically, the 2-hour chart indicators are about to move back in the bullish territory.
Ether Price Analysis
The past two sessions were very positive for ETH/USD. The pair formed a solid support base around the $505.00 level and started a sharp upward wave.
Similarly, there was an improvement in buying sentiment for ETH/BTC, resulting in a bullish push above the 0.0750BTC resistance. However, the pair then slid back slightly.
Starting with the 30-minute chart of ETH/USD, there is a double bottom pattern visible near the $505.00 support. The pair started an upward wave and broke a contracting triangle with resistance at $522.00.
It opened the doors for more gains and the price moved above the 50 percent Fibonacci retracement level of the last decline from the $574.44 high to $505.69 low. More importantly, Ether’s price successfully moved above the $540.00 and $550.00 resistance levels.
Looking at the 2-hour chart of ETH/USD, the last two candles are signaling a rejection pattern. However, the pair is currently facing a crucial resistance near $570.00. Should the price move past $570.00, there could soon be a test of the $600.00 handle.
Conversely, the price may possibly correct a few points toward the broken resistances at $550.00 and $540.00, which are likely to act as supports. A successful daily close above the $550.00 pivot level will most likely increase the chances of more upsides in Ether during the following days.
Overall, the current price action indicates a positive bias above $540.00, with resistances at $565.00, $570.00, and $600.00.
Important Resistance Levels
$570.00 and $600.00
Important Support Levels
$550.00 and $540.00
The RSI is about to break the 50 level.
The MACD has moved into 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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