ETH/USD Weekly Forecast: Downside Looking Limited
|There was a sharp rise and then consolidation this past week in Ether price against the US Dollar.|
|The 12-hour chart of ETH/USD suggests major upside break above $12.00.|
|The pair at the moment consolidating and waiting for catalyst for the next move.|
Technically, the 12-hour chart indicators turned super bullish, calling for further gains.
Ether Spreads Joy for Buyers
Ether traded higher against most of its major rivals, including the US Dollar and Bitcoin. The ETH/USD pair broke a crucial resistance area near $12.00, clearing the way for further upsides.
The ETH/BTC pair also showed signs of strength, moving above the 0.0120BTC resistance area. Overall, there were many positive signs for ETH, suggesting a bullish bias in the near term.
Let us look at the 12-hour chart of ETH/USD to understand how the pair traded and moved past $12.00. There was a contracting ascending triangle pattern on the chart. The price remained supported near the triangle lower trend line at $10.80.
Finally, there was an upside break as the price cleared the triangle resistance at $11.60-11.80. The best part was close above a major pivot of $12.00.
These were positive signs, as the price was able to trade above $13.00 to register a new monthly high at $13.38. Ether has started consolidating gains, and might look for another upside move going forward.
There is a small flag or pennant pattern formed with support near $12.50, and resistance at $12.90-13.00. Once the pattern is complete, it would call for the next move.
Generally such patterns are bullish in nature (as mentioned earlier). Further gains could be expected, but buyers should wait for a proper close before jumping into a trade.
The 2-hour chart is already signaling a start of an upside move, however there is no momentum as of now. In my view, there can be continuing range moves before the price makes the next move.