ETH/USD Forecast: Bullish, But Beware of $11.00
|Ether price remained below the $11.00 resistance against the US Dollar, and was seen struggling to hold gains.|
|The ETH/USD pair traded towards $10.50 where it found support and moved higher.|
|The 2-hour chart suggests that the pair broke a bullish trend line, which means the price is struggling to break $11.00.|
Technically, the 2-hour chart indicators just managed to stay in the bullish territory.
Ether Price Major Upside Hurdle
We recently saw Ether price rising towards $11.00 against the US Dollar, but there was no break above the stated level. It acted as a strong resistance and contained the upside move.
The ETH/USD pair consolidated for some time below the stated level before moving down. There was a dip towards the $10.60-10.50 area, which acted as a support and prevented any further losses.
The pair recovered from $10.55, and moved above the 23.6% Fibonacci retracement level of the last decline from the $11.00 high to $10.55 low. During the upside move, the price moved above a bearish trend line formed on the 30-min chart.
However, it looks like the price is struggling to move past $10.80, which also represents the 50% Fibonacci retracement level of the last decline from the $11.00 high to $10.55 low.
If the pair needs to retest $11.00, it has to break the $10.80 level. When we look at the 2-hour chart of ETH/USD, there are a few concerns. First, the chart clearly shows how there was a continuous struggle to move above $11.00.
Second, there was a break below a major connecting bullish trend line, igniting a downside move. Third, the $10.50 support area held the downside well, and currently acting as a barrier for further losses.
Overall, it looks like there are two important levels to watch out - $11.00 as a crucial resistance, and $10.50 as a major support. As long as the price holds $10.50, there is a chance of the pair attempting a move towards or above $11.00.