ETHUSD has been in a range as far as the daily chart is concerned. The price had rejection from a resistance zone twice. After having a bounce on two occasions, the price has been moving towards the North again. Let’s have a look at the daily chart what it says about its price movement.
The Daily Chart
The daily chart shows that the price has been moving upward after producing a good-looking bullish candle. Last Thursday, it produced another bullish candle. On Friday, a bearish pin-bar was produced (the arrowed candle). A strong daily resistance is very nearby too. Thus, the daily chart does not look good for daily traders.
On the other hand, the H4 shows that the price has been moving towards the upside by obeying an up trending trend line. The price has been having a correction at the moment. A strong level of horizontal support has been held by the price earlier. That level might be tested by the price again. If the level ends up producing an H4 bullish reversal candle and an upside breakout, then the price will move towards the North further. Let’s have a look at the H4 chart.
The H4 Chart
The level of 263.75 is the level where the price made a breakout earlier. The price already had a bounce at the level. There is a strong possibility that the price might come to test the level again. The up trending trend line is another factor here. If the horizontal support line and the up trending trend line both are held by the price where they intersect, it will be considered as a dynamic support point. A dynamic support is such a strong support level which pushes the price towards upside with a good pace. In this case, it may do the same. Thus, the H4 traders may look for the buying opportunities once they get an H4 bullish reversal candle at the dynamic support level and a breakout at the level of 278.20 (the last highest high).
The Bottom Line
For the H4 traders, ETHUSD has a lot to offer. If it makes an upside breakout, buyers will push the price towards the North further. On the other hand, a downside breakout would push the price towards the South. However, for the daily traders, it does not have that much to offer. They might as well wait for the price to come out from the range and take a direction.