ETH/USD Weekly Forecast: Bullish Consolidation
|Ether price recovered well from the $10.60 support against the US Dollar, and currently consolidating.|
|There is a bearish trend line formed on the 2-hour chart of ETH/USD with resistance at $11.40.|
|The 12-hour chart highlights a clear consolidation above $11.00 with resistance at the top near $11.60.|
Technically, the 12-hour chart indicators suggest consolidation above their neutral levels.
Ether Price Signaling Strength
This past week was a roller coaster ride for Ether price, as it moved down sharply once against the US dollar towards $10.60. However, it managed to hold the stated support area and later recovered.
Let’s start with looking at the 12-hour chart of ETH/USD. There are a few important points to note:
- There was a rejection near $11.50-11.60. The price struggled a lot many times to break the mentioned resistance area.
- The downside move was prevented near $10.60. It was a strong resistance earlier, and now acted as a crucial support.
- The price is again moving higher, and looks set to challenge the $11.60 resistance.
- There is also a bullish trend line on the chart, moving higher, and could act as a support near $11.00.
All these points suggest that Ether price is well supported near $11.00-10.60. At the same time, it faces a monster resistance near $11.60.
A break above $11.60 might open the doors for more gains and acceleration towards $11.87, which is the previous swing high. However, in my opinion, above $11.60, the next major resistance is at $12.00.
The price is likely to trade inside the $11.00-11.60 range before making the next move. Looking at the 2-hour chart of ETH/USD, it looks like an initial resistance is near a bearish trend line at $11.40.
The same level also coincides with the 76.4% Fibonacci retracement level of the last downside move from $11.61 to $10.62. A break above it could give buyers a reason to push the price above $11.60 as well.
Overall, the trend is positive for ETH/USD at the moment, and any setbacks remain supported near $11.20 and $11.00.