Ether Price Responds To Key Resistance Area
|Ether price remained elevated against the US Dollar with support near $13.00 and $12.90.|
|The ETH/USD pair is struggling to clear a key resistance area near $13.20.|
|A break above the mentioned resistance area could trigger a test of $13.38.|
Technically, the hourly chart indicators are consolidating after the recent moves in the bullish territory.
ETH/USD About to Move Higher?
Yesterday, we saw how there was a nice upside break in ETH/USD, as the pair moved above a crucial resistance area at $2.80. The upside momentum remained intact during the past two sessions.
The hourly chart of ETH/USD suggests that the pair is struggling to clear the $13.20 resistance. And, after a couple of failures, Ether price started consolidating gains.
There is a contracting triangle pattern formed on the chart with resistance at $13.20 and support at $13.00. It can be seen as a consolidating pattern initiated after the recent gains. Once the pattern is complete, the price is likely to continue its upside move.
A break above $13.20 would open the doors for a test of the last major swing high near $13.38 (14th Feb 2017 high). On the downside, $13.00 is a crucial support since it also coincides with the 23.6% Fibonacci retracement level of the last wave from the $12.52 low to $13.20 high.
As I said, such patterns are mostly bullish, means once it is complete, the trend resumes. The price is currently in the 4th wave inside the triangle, so once the 5th once starts, ETH/USD might try to move past $13.20.
The 4-hour chart shows a clear bullish picture. However, there is one important point to note. Even if there is a break above $13.20, the next hurdle is very close on the upside.
On the downside, there is a connecting bullish trend line with support at $12.90, which might play a major role in the short term.