Ethereum has been trapped within a range on the daily chart. Earlier, the price was heading towards the North with a good pace, but a level of resistance came into play on its way. A strong daily bearish candle was produced on the resistance level. Intraday traders took advantage of it. Thus, ETHUSD got sluggish on the daily chart. Nevertheless, the price has been going towards the North. The buying momentum was slow though. Since there is a daily resistance level nearby, thus the buyers have been defensive. A daily breakout is needed for them to be engaged with buying the pair again.
Let us have a look at the EthereumUSD daily chart.
The Daily Chart
After being very bullish on the daily chart, the price found its resistance at the level of 278.20. The price came down. However, it has been heading towards the North again but as expected, it got sluggish. There has been less buying momentum. The main reason behind that is the level of resistance at 278.20 where the price had a strong rejection. If a daily breakout takes place here, it would attract the buyers again. Yesterday’s daily candle was a bearish candle, but it closed within the previous bullish candle’s body. Thus, there is a good chance that we may see a breakout soon.
Let us see what the H4 chart tells us about the breakout.
The H4 Chart
The chart suggests that the price has been within a range where it reacted a number of times. The support level looks strong enough to help the price go towards the resistance level and make the breakout. So far, two doji and one pin bar H4 candles were produced at the support level in the last three trading days. This is an indication that the level is a very strong level of support.
However, if somehow the support level gets broken, then the daily chart buyers of EthereumUSD will have to wait longer to go long on the pair again.