ETHUSD has been within a daily range for weeks. The price had a bounce three trading days ago at the support level and started heading towards the North again. The daily candles within the range look bullish. On the last bullish wave, we have three consecutive daily bullish candles. It suggests that the range is getting stronger. The daily traders have been waiting for the price to make a breakout. Especially the buyers were eagerly waiting for an upside breakout. Looking at the price action on the daily chart, an upside breakout might take place. At least this is where the price has been heading to at the moment. The daily chart explains it better. Let us have a look at the daily chart.
The Daily Chart
The level of 229.55 is the level of support where the price had a bounce. It, in fact, produced a bullish engulfing candle as well. The next candle came out as a doji candle. However, it should be considered as the continuation of the bullish momentum since the very next candle came out as a solid bullish candle. Considering these three candles, it is evident that the price is heading towards the level of 287.90 where it had a rejection from earlier.
Let’s have a look at the H4 chart.
The H4 Chart
The H4 chart shows that the price made a breakout at the level of 251.30. The buyers would love to see a correction on the price. In that case, the level of 251.30 might come into play an important role. It has the potential to be the level of support. If the price starts having a correction from around the level where it is now, then the level of 251.30 might get held by the H4 candles. An H4 bullish reversal candle at the level would attract H4 buyers to go long on the pair.
The Bottom Line
The support/resistance level is strong means the potential breakout is going to be a strong one as well. There is a saying that the harder it ranges, the stronger the breakout is. Now the question is whether it makes a breakout towards the up or the downside. We must wait to get the answer from the daily chart.