Ethereum is located at 3,265.76 below today's high of 3,305.09. It is likely to move somehow sideways in the short term. We'll have to wait for strong confirmation before deciding to go long on ETH/USD.
The bias is bullish but the price of Ethereum stands right below strong resistance levels. ETH/USD has increased as the price of Bitcoin jumped higher. Ethereum added 6.97% in the last 24h, and it's up by 1.12% in the last 7days.
ETH/USD retreat is over
ETH/USD has found strong demand right below the upside 50% Fibonacci line of the ascending pitchfork and under the weekly S1 (3,023.95) level. Its failure to stabilize under these obstacles signaled weak sellers and strong bullish pressure.
Now the ascending pitchfork's upper median line (UML) exerts pressure. This line is seen as a dynamic resistance. Making a valid breakout above 3,330.08 former high and through the 61.8% (3,367.79) could activate an upside continuation.
Ethereum forecast
If the price jumps and stabilizes above the 61.8% (3,367) level, it will be a long opportunity. In the short term, we cannot exclude a temporary sideways movement. Technically, only a new lower low, a drop below 2,951.97 could invalidate the bullish scenario.
The material has been provided by InstaForex Company - www.instaforex.com