Ether’s price dipped and bounced back against the US dollar. ETH/USD has to overcome a strong resistance at $520.00-530.00 for further gains.
Ether’s price bounced sharply after testing the $505.00 support against the US dollar.
A major bullish trendline has formed with support near $505.00 on the 2-hour chart of ETH/USD.
ETH/BTC is showing positive signs and it could move higher toward 0.0650BTC.
Technically, the 2-hour chart indicators are slowly rising in the bullish territory.
$505 is Important for ETH/USD
Yesterday, we discussed an important support at $505.00, which recently acted as a barrier for ETH/USD sellers. The pair dipped from the $522.16 high, but the $500.00-505.00 area acted as a key support.
On the other hand, ETH/BTC remained range bound. However, there is an RSI divergence forming on the hourly chart, which could initiate an upward move toward 0.0650BTC during the upcoming sessions.
Looking at the 30-minute chart of ETH/USD, the pair formed an intraday high at $522.16 before dipping sharply below $510.00. However, the $500.00 and $505.00 support levels prevented declines and a low was formed at $501.46.
The pair bounced back and moved above the 50 percent Fibonacci retracement level of the last drop from the $522.16 high to $501.46 low. More importantly, there was a break above a bearish trendline at $512.00 on the same chart.
These are positive signs, suggesting that Ether’s price was rejected from the $505.00 support. On the upside, Ether faces a key resistance near $520.00 and the recent high at $522.16. A successful break above this crest could clear the path for further gains toward the next barrier of $535.00.
The 2-hour chart of ETH/USD indicates the importance of the $535.00-537.00 resistance. On the downside, there is a crucial bullish trendline forming with current support at $505.00.
Overall, the last bounce from the $505.00 support is encouraging, but Ether buyers need to gain strength to surpass the $520.00 and $535.00 hurdles.
Important Resistance Levels
$520.00 and $535.00
Important Support Levels
$505.00 and $500.00
The RSI is currently above the 60 level.
The MACD is slowly gaining momentum in 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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