Ether is showing a few positive signs above $590.00 against the US dollar. ETH/USD could break the $620.00 resistance for a move toward $650.00.
Ether’s price is likely forming a short-term bottom at $572.00 against the US dollar.
There is a consolidation breakout pattern forming with resistance near $620.00 on the 2-hour chart of ETH/USD.
ETH/BTC is trading near a crucial support area at 0.0720BTC.
Technically, the 2-hour chart indicators are consolidating below midlines.
ETH/USD Forming Support
After a significant decline, ETH/USD found support around $575.00. The pair started correcting higher and it is currently showing a few positive signs with support at $590.00.
As discussed yesterday, ETH/BTC declined further and tested the 0.0720BTC support. If the pair fails to stay above 0.0720BTC, it may perhaps test the next support at 0.0700BTC.
Looking at the 2-hour chart of ETH/USD, the pair is forming a decent support above $575.00. There was a minor upward wave above the 23.6 percent Fibonacci retracement level of the last drop from the $747.89 high to $572.29 low.
However, the pair failed to gain traction above $620.00 and is currently forming consolidation breakout pattern with resistance near $620.00 on the same chart.
If Ether buyers gain control and succeed in pushing the price above $620.00, there could be further gains toward the $650.00 level. On the downside, the triangle support is at $590.00. Should the price fail to stay above $590.00, it will most likely retest $572.00-575.00.
Moving down to the 30-minute chart, ETH/USD is currently attempting to break a declining channel with resistance at $612.00. However, the pair must move past the $618.00 and $620.00 resistance levels to set the pace for an upward move toward $650.00.
On the downside, there is a connecting bullish trendline forming with support at $590.00, which is also the triangle support zone. The current price action is slightly bullish, but it would take a successful 2-hour close above $620.00 for further recoveries in the near term.
Important Resistance Levels
$620.00 and $650.00
Important Support Levels
$590.00 and $575.00
The RSI is still well below the 50 level, but recovering.
The MACD is slowly reducing its bearish slope.
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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