ETH/USD - $120 IN SIGHT
The market sentiment for ETH/USD favors a short-term uptrend move, pushing up from the lower channel boundary on the 1-hour chart which serves as the short-term support for today’s price action. However, upside movement will face a number of headwinds, and buying activity needs to pick up for price to attain the upper channel boundary. The boundaries of the channel will therefore serve as the limits of price movement if the current market conditions remain the same.
The hourly chart for ETH/USD shows that price action for the day is so far, contained within an upward channel, on the back of very low trading volumes. The 9-day EMA line has been broken by the 7am UTC candle and if this candle is able to hold firm above the 9EMA line, we could see price bouncing strongly off the lower channel line for the day.
In performing this bounce, price is going to have several obstacles along the way. There is a short-term intraday resistance area that can be seen at the $106.30 price level, which represents a key price level that has at various times been a resistance, and also played a role reversal support function.
Furthermore, the upper channel resistance is also expected to intersect the R1 resistance pivot at the $107.56 price area. These can be seen on the chart snapshot below.
Price action for the day is expected to trade within the channel. The lower channel trendline has proven to be a strong intraday support which is expected to curtail the activities of the bears. However, buying volumes are still very low, and therefore it remains to be seen if the price action will be able to break the intraday resistance line at $106.30, contained within the confines of the channel.
If the bulls are able to step up their activity, then price may surpass this area and push up to the upper channel line, where some considerable buying push will be required to break beyond that border. It should also be noted that the R1 resistance pivot will prove to be another obstacle that price will contend with if it does get to the upper border.
Failure of bullish activity to take the price beyond the $106.30 resistance area, will lead to price re-testing the lower channel border, putting it under significant pressure. Supporting this view is the very low buying volume level, as can be seen by the declining volume bars.
The hourly chart for ETH/USD shows that price action for the day is so far, contained within an upward channel, on the back of very low trading volumes. The 9-day EMA line has been broken by the 7am UTC candle and if this candle is able to hold firm above the 9EMA line, we could see price bouncing strongly off the lower channel line for the day.
In performing this bounce, price is going to have several obstacles along the way. There is a short-term intraday resistance area that can be seen at the $106.30 price level, which represents a key price level that has at various times been a resistance, and also played a role reversal support function.
Furthermore, the upper channel resistance is also expected to intersect the R1 resistance pivot at the $107.56 price area. These can be seen on the chart snapshot below.
Price action for the day is expected to trade within the channel. The lower channel trendline has proven to be a strong intraday support which is expected to curtail the activities of the bears. However, buying volumes are still very low, and therefore it remains to be seen if the price action will be able to break the intraday resistance line at $106.30, contained within the confines of the channel.
If the bulls are able to step up their activity, then price may surpass this area and push up to the upper channel line, where some considerable buying push will be required to break beyond that border. It should also be noted that the R1 resistance pivot will prove to be another obstacle that price will contend with if it does get to the upper border.
Failure of bullish activity to take the price beyond the $106.30 resistance area, will lead to price re-testing the lower channel border, putting it under significant pressure. Supporting this view is the very low buying volume level, as can be seen by the declining volume bars.
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