ETH/USD Forecast: What Does Recent Break Mean?
|Ether price extended its upside move against the US Dollar and settled above $12.00.|
|The daily chart of ETH/USD suggests the pair is now above a major resistance ($12.00), and facing another crucial hurdle ($13.40-13.60).|
|If the current trend remains intact, there is a chance of ETH/USD testing the last swing high $14.31.|
Technically, the hourly chart indicators are correcting lower, but remain well elevated in the bullish territory.
Ether Price Pushing Higher
There were heavy upside moves in Ether price against both the US Dollar and Bitcoin. The ETH/USD pair moved past $13.00 and registered a new 3-month high at $13.38. On the other hand, the ETH/BTC pair managed to move back above the 0.0125BTC resistance.
It looks like Ether price has formed a nice bullish trend, and it may look to extend gains in the near term. Let us look at the daily chart of ETH/USD to understand what the recent break means, and try to figure out the next hurdles for the pair on the upside.
The daily chart shows that the price was slowly grinding higher, struggling on a couple of occasions to clear $12.00. However, the recent break of $12.00 ignited a sharp upside move, pushing the price above $13.00.
It looks like the price has cleared a major barrier ($12.00), which is a bullish sign. The same level might now act as a support if the price corrects lower.
On the upside, the next crucial resistance is around $13.40-13.60. The mentioned levels prevented upside in ETH/USD in September and October 2016. The recent upside also stopped near the same area.
So, a break above the highlighted resistance area won’t be easy. If there is a break, the next resistance would be $14.30 (September 2016 high).
In the short term, the hourly chart suggests that the price started a correction. A triangle pattern was formed, which seems to be broken, opening the doors for another upside push towards $13.10-13.30.