ETHUSD produced a bullish day yesterday. However, the daily candle closed within the level of resistance which buyers have been waiting for a long time to be breached. Today’s intraday price action has been choppy. This means there is a possibility that today’s daily candle ends up being an inside bar. It may end up being a bullish candle breaching the resistance level as well. In both cases, the buyers will be interested to go long on ETHUSD.
Let us have a look at the daily ETHUSD chart.
The Daily Chart
The daily chart’s price action suggests that the level of 196.30 is the level of support where the price had rejection twice. The price action suggests that it may be a double bottom if the neckline level which is at 232.20 is breached. Yesterday’s candle closed within the level. If the price keeps moving towards the upside today and today’s candle closed above the level, the buyers will start going long again. On the other hand, if today’s candle ends up being an inside bar, the buyers will have to wait for a bullish daily candle to engulf the inside bar daily candle and to offer them long entries.
Let us now have a look at the H4-ETHUSD chart.
The H4 Chart
The H4 chart’s price action suggests that after being very bullish the price has been on a correction. The chart produced three consecutive H4 bearish candles. Any bullish H4 engulfing candle may attract the intraday buyers to go long which eventually make a breakout at the highest high of the wave.
The Bottom Line
Both the daily and the H4 chart look good for the buyers. The H4 chart looks to be one step ahead than the daily chart to offer long entries to the buyers. This has increased the chance of a daily breakout. Let us wait and see whether we get the breakout on ETHUSD daily chart.