Technical Analysis – ETHUSD rebounds, surpassing 23.6% Fibonacci

Melina Deltas, XM Investment Research Desk

ETHUSD has reversed back up after finding support at the 225 level, achieved earlier today.

Momentum indicators are pointing to a positive bias in the 4-hour chart with the MACD just above trigger line and the stochastic oscillator is approaching the 80 level as the %K line is heading above the %D line.

In the event of an upside reversal, the 253 resistance level could act as a barrier before being able to re-challenge the 270 obstacle. A break above this level would shift the medium-term outlook to a more neutral one as it would take the pair towards the nine-month high of 288.

On the other hand, further losses should see the June 4 low of 232 acting as a major support. A drop below this level would reinforce the bearish structure in the near term and open the way towards the next key support level of 225.

In brief, the price could gain further steam in the short term in case of a jump above the moving averages while in the medium-term the pair continues to hold a positive outlook.