ETHUSD: Support bounce to start a new move higher?

Today's focus: ETHUSD

Pattern – Divergence, demand bounce.
Support – 1538
Resistance – 1647

Thanks for checking out today’s update. Today, we have run over ETHUSD, breaking down the overall price picture, levels, and patterns and incorporating moving average and RSI into the analysis.

ETHUSD continues to build after sellers look to have formed a washout bar retesting support and demand seen at 1538. Since that test, we have seen buyers quickly jump back into the market, lifting price back up to resistance. We also can see divergence forming supporting the buying, but the pattern is not a classic example but still worth noting.

If we continue to follow a bullish line, we want to see buyers break resistance and test the main trendline. If we see a reaction lower, it is fine for it to move back into the previous resistance as long as we see a new higher low with firm buying. A move back to support is a worry, and a break of that level could set off a new push back down to 1422.

Have a great day and good trading.