ETHUSD seems to have found a level of support which has the potential to produce a double bottom on the daily chart. Yesterday’s daily candle came out as a Doji candle. Thus, the price action suggests that the daily chart end up producing a morning star if today’s candle closes above the day before yesterday’s bearish candle’s opening price.
Let us have a look at the daily ETHUSD chart.
The Daily Chart
The chart shows that the level of 196.30 is the level of support where the price had a bounce earlier as well. The price then went up to the level of 232.20; had a rejection and came back to the level of support again. Yesterday’s doji candle increases the potential to produce a morning star here. If that happens, then the daily traders will eagerly be waiting for a breakout at the neckline which is at 232.20 to go long on the pair.
Let us now have a look at the H4-ETHUSD chart to find out what H4 chart’s price action suggests.
The H4 Chart
The H4 chart shows that the price had bounced at the support level three times. At the last bounce, the H4 chart produces an H4 bullish pin bar which is a very strong H4 bullish reversal candle. The H4 price action suggests that the price may head towards the level of 232.20 with good momentum.
The Bottom Line
The H4 and the Daily chart show that the resistance level may be tested soon. A daily breakout at the resistance level will set a strong bullish tone. The H4 chart looks bullish enough to make a breakout at the resistance level though. We must not ignore the fact that the resistance level is a very strong level of resistance too. Thus, the battle is going to be an intense one as things stand with ETHUSD.