ETHUSD still is within a range as far as the daily chart is concerned. The price was near the resistance level from where Yesterday’s daily candle came out as an engulfing candle. This is what has made the equations complicated for the daily traders. Today’s intraday chart suggests that the price has been bullish. However, daily traders must wait until it makes an upside breakout at the resistance level from where the price had rejection a number of times.
Let us have a look at Daily-ETHUSD chart.
The Daily Chart
The level of 278.20 is the level of resistance of the range. The price had rejection three times already. Yesterday’s engulfing candle has become a significant factor as well. This would give the H4 traders a lot of confidence to go short on the pair. Eventually, this might make the daily traders wait further to get the upside breakout which they have been waiting for. Let us have a look at the H4 chart and find out what statement it makes.
The H4 Chart
The H4 chart shows that it made a breakout at the support level of an up trending trend line. The breakout did not take place in a befitting way meaning it was not breached by an H4 commanding bearish candle. Never the less, it is a breakout. As long as the resistance level is held by the H4 candles, the breakout might play an important role to push the price towards the downside. However, since there has been a fragile breakout, the price might go to the upside. The fact remains, any breakout at yesterday’s lowest low would drive the price to go towards the South.
The Bottom Line
For the daily ETHUSD traders, it is all about being patient until a daily breakout towards the upside takes place since the price is adjacent to the resistance level. For the H4 traders, sellers may fancy their chance to go short if a downside breakout takes place.