FX.co ★ Ethereum respects key support and bounces higher.

Red line - resistance trend line

Blue rectangle - horizontal support

In our previous analysis on Ethereum, we noted the importance of the $1,700 horizontal support level. Price recently tested this level once again and it was respected. Price is now bouncing higher at $1,845 with potential to reach $1,910. A descending triangle pattern has been formed. The resistance in the 4 hour chart is shown by the red downward sloping trend line. Bulls need to break above this resistance trend line in order to hope for the start of a new upward move. As long as price remains below the red trend line resistance, the chances favor a downward break below $1,700 support. Until then traders need to be patient as there is still plenty of room inside the triangle pattern for price to continue moving sideways.