The price has recently entered a support zone. It successfully bounced from its lower bound at $199.50 and it looks like buyers will push the price well above next $200 support. Fib retracement of the recent bounce is also at $200, which indicates that it is an EXTREMELY important pivot level. There is also a nice bullish trend line, which will meet with support lines in about 24h.
Resistances are mostly supports-turned-resistances from before the move on Oct 18. They are a must to break in order to push the price higher.
On the downside, a drop bellow $200 is followed by an immediate support at $199.50 and a bullish trend line. Below this Ether will be put in a lot of insecurities.
There are also some trend lines formed on the daily chart of ETHUSD. The price is currently approaching the first bearish trend line at ~$203, that will probably be a smaller hurdle for buyers. Next two trend lines form a triangle with an end near extended end of the smaller bearish trend line.
Why I'm going long on this one?
The first thing is because of that large red candle with a long wick on the downside, which could indicate that sellers aren't is such power as we thought after all. This candle is almost immediately followed by two inverted hammers, which indicate a bullish reversal.
The second reason is because of all overlapping supports. There are two supports right next to each other and a bullish trend line is approaching them. So therefore they will be a huge hurdle fro sellers to break.The price is currently above $200 and a daily close above it could open many doors for upward moves.
Resistances and the smaller bearish trend line on a daily chart are also all currently in a space of $1, but you can see many upward wicks entered resistance zone yesterday. This could mean that sellers have some struggles keeping them. So I think buyers can get enough strength to start a fresh upward move.
Resistances are mostly supports-turned-resistances from before the move on Oct 18. They are a must to break in order to push the price higher.
On the downside, a drop bellow $200 is followed by an immediate support at $199.50 and a bullish trend line. Below this Ether will be put in a lot of insecurities.
There are also some trend lines formed on the daily chart of ETHUSD. The price is currently approaching the first bearish trend line at ~$203, that will probably be a smaller hurdle for buyers. Next two trend lines form a triangle with an end near extended end of the smaller bearish trend line.
Why I'm going long on this one?
The first thing is because of that large red candle with a long wick on the downside, which could indicate that sellers aren't is such power as we thought after all. This candle is almost immediately followed by two inverted hammers, which indicate a bullish reversal.
The second reason is because of all overlapping supports. There are two supports right next to each other and a bullish trend line is approaching them. So therefore they will be a huge hurdle fro sellers to break.The price is currently above $200 and a daily close above it could open many doors for upward moves.
Resistances and the smaller bearish trend line on a daily chart are also all currently in a space of $1, but you can see many upward wicks entered resistance zone yesterday. This could mean that sellers have some struggles keeping them. So I think buyers can get enough strength to start a fresh upward move.