ETH/USD Weekly Forecast: Trend Overwhelmingly Bullish
|Ether price gained bullish momentum this past week against the US dollar, and closed above $11.00.|
|There was a clear break above the $11.00 resistance, opening the doors for a move towards $11.87.|
|The 2-hour chart of ETH/USD suggests that the pair is currently consolidating gains below $11.50.|
Technically, the 12-hour chart indicators are back in the bullish zone, and looks to extend moves positively.
Ether Price Next Leg Higher Underway
This past week was eventful for the Ether, as the price managed to hold an important support at $10.50 against the US Dollar. There was a consolidation phase initiated above the $10.50 support, and later the price broke higher to move into the bullish zone.
The upside move was such that the price broke an important resistance at $10.90-11.00. It clearly opened the doors for further gains in ETH/USD, and it can be clearly seen from the 12-hour chart.
The pair broke the stated resistance, and since then the candles formed are only bullish. It suggests that the price has formed a bullish trend and may continue to move higher in the short term.
On the upside, the next important resistance is at $11.87. It was a rejection level earlier, and may act as a barrier this time. However, I feel that the physiological level at $12.00 is more important than $11.87.
It is the one that may play a critical role if the pair continues to move higher. When we drop down to the 2-hour chart, we can clearly see that the pair is in a bullish trend and placed comfortably above $11.00.
The recent high was $11.48, and the pair looks like consolidating gains at the moment. There is a short-term breakout pattern formed on the chart (contracting triangle).
The pair may continue to trade in a tiny range for some time with support at $11.30 before making the next move. On the upside, a break above the $11.50 resistance might push the price towards $11.87.