Ether is currently trading above the 0.0800BTC support level. ETHBTC is positioned nicely in the bullish zone, but it is facing a major resistance near 0.1000BTC.
The current price is positive, since technical indicators on the 4 hour chart are stable and signaling more gains as long as price is above 0.0800 BTC.
Key Findings:
- The last upside wave in ether price stalled around a crucial resistance at 0.1000BTC.
- There is a key bullish trend line forming with support at 0.0800BTC on the 4 hour ETHBTC chart.
- Ether price may consolidate above 0.0800BTC before making an attempt to retest the resistance around 0.1000 BTC.
Will ether price resume its uptrend?
The past few days were bullish as ether price successfully moved above the 0.0800 BTC resistance level. A solid upside wave was initiated from the 0.0500 BTC pivot level.
During the upside wave, many important resistances were breached including levels around 0.0750BTC, 0.0800BTC, and 0.0880BTC. There was an attempt to surpass a crucial resistance near the 0.1000BTC price level. However, buyers failed to get the momentum going and a high was formed at 0.1009BTC.
Later, a downside correction was initiated and price moved below the 23.6% Fibonacci retracement level of the last wave, migrating from the 0.05469BTC low to a high of 0.1009BTC. The downside correction pulled price down below the 0.0900BTC support level and the 50 period simple moving average (4-hours).
At the moment, ether is trading within a tiny range around the 50 period simple moving average (SMA) and the 0.0900 BTC price level. On the downside, there is a key bullish trend line forming with support at 0.0800BTC on the 4 hour ETHBTC chart.
The trend line support is significant for the current bullish trend starting from the 0.0500 BTC low. The pair must stay above the 0.0800 BTC support level to remain in an uptrend. If it fails to stay above 0.0800BTC, there could be a fresh start of a bearish wave.
The next major support is at 0.0720BTC, which corresponds to the 61.8% Fibonacci retracement level of the last wave (extending from the 0.05469BTC low to the 0.1009BTC high).
Overall, ETHBTC will most likely continue to move higher as long as it stays above 0.0800BTC.
Chart Credit: Bitfinex, hosted on Tradingview.com