Technically, the hourly chart indicators are reaching extreme overbought levels, but there is no sign of a downside move just yet.
Ether Price Upside Thrust
Yesterday, we noticed how Ether price was trading near make-or-break levels against the US Dollar. Later, the price gained momentum, and succeeded in breaking a couple of important resistance levels.
First, the last swing high of $10.90 was broken. Second, the all-important $11.00 resistance was cleared during the upside drift. The upside move was so strong that there was a close above the $11.00 handle.
It looks like the ETH/USD has set the pace for more gains in the near term after taking out the mentioned resistance levels. The hourly chart also highlights how there was a break above a contracting triangle pattern, which ignited an upside thrust.
The pair is now comfortably placed above the $11.00 level, and the last few candles are bullish, suggesting a positive bias for Ether price. Most importantly, Ether price also succeeded in registering gains against the Bitcoin, as ETH/BTC is now back above the 0.0110BTC.
The ETH/USD pair has traded as high as $11.38 so far, and the 4-hour chart suggests that the momentum is in favor of more gains.
So, the next major question that arises is what can be the next hurdle? In my view, Jan 5th 2017 high at 11.87 may be seen as a crucial resistance.
However, an intermediate resistance could be near $11.60. At the moment, the price is reaching overbought levels, so there is a chance of a minor correction before the trend resumes. I won’t be surprised if there is a dip to retest the $11.00 level.