Ethereum Breaks Out, Then Pulls Back

Today’s price action in Ethereum is a classic breakout followed by a pullback.

ETHUSD traded as high as $489, about 9 percent above its August 17 high. It then pulled back but quickly held some important levels.

First, it tested $420 on a very brief intra-hour basis. That was a peak in the hourly chart on August 20, and a low early Monday.

There was another consolidation zone on August 31 around $440. It was resistance immediately before the breakout, which now makes it potentially key for continuation to the upside.

The current levels are important for ETHUSD, and look to be textbook support. Buyers may be active if prices hold these levels between $420 and $440.