ETH/USD Weekly Forecast: Positive Trend Development
|Ether price managed to gain traction against the US Dollar and traded above the $8.0 handle this past week.|
|There is a major bullish break visible on the 12-hour chart of the ETH/USD pair.|
|The 2-hour chart suggests a crucial resistance near $8.55, and support at $8.00.|
Technically, the indicators on the 12-hour chart changed the bias to bullish.
Ether Price Consolidating Gains
This past week was much better for Ether price, as it climbed higher against both the US Dollar and Bitcoin. The ETH/USD pair performed well, and the best part was a close above the $8.00 handle.
When we look at a higher timeframe chart like the 12-hour chart, there is a clear bullish break visible. A bearish trend line on the same chart was cleared to open the doors for more gains at $7.30.
Moreover, there was a break above the 38.2% Fib retracement level of the last decline from the $10.24 high to $5.94 low. These signs are positive, and suggesting that the price may now move higher in the near term.
The chart also shows the importance of the $7.00 support. The price formed a base near the mentioned support and moved higher. The upside move was just shy of the 50% Fib retracement level of the last decline from the $10.24 high to $5.94 low.
Considering the 2-hour chart of ETH/USD, there is a crucial resistance at $8.50-8.55. There are two failed attempts already. On the downside, the $8.00 support is holding declines and acting as a barrier for Ether sellers.
Currently, it looks like there can be another test of the $8.20-00 support area before the pair moves higher once again. A successful break and close above the $8.55 resistance area is needed for the price to test the $9.00 handle.
Overall, the trend is positive as long as the price is above the $8.00 support.