Hello traders! Let’s have a look at the Ethereum vs USD crypto pair. Most probably know that this coin is ranked #2 and goes straight after the mighty Bitcoin. This is the reason why it is so popular amongst traders, investors and crypto enthusiasts. And now we will dive into the price action for ETH/USD.
The weekly chart below shows that price has bounced off the support downtrend trendline. After 2 weeks of range trading, ETH/USD produced a two strong green candles, where price managed to recover by 100% since $85 low.
The Fibonacci retracement indicator applied to the 04.2018 – 12.2018 downtrend shows, that the nearest resistance is at 23.6% retracement level at $260. From the current price of $170, this is a potential growth of 50% in the coming weeks. The upside target also corresponds to the downtrend trendline, which might play a key resistance in the medium to long term.
On the 8-hour chart, the price broke below the average-price downtrend trendline as well as the resistance at $152. But at the same time, Ethereum has reached the top of the ascending channel, which holds the price from further growth for the time being.
As soon as channel will be broken, the uptrend can get accelerated pushing the price towards $260 area. At the same time, as long as price remains within the channel, ETH/USD might correct down, to re-test the $152 support area once again. But overall, the trend seems to become very bullish and it is only a matter of time before we see the break to the upside.
Bias: Strongly bullish while above $150
Potential Support Zone: $150 – 160
Potential Targets: $260
Have a profitable trading!