Ether Price Weekly Analysis – ETH Primed For Lift-Off?
|Ethereum price proved that the markets were taken off guard due to the DAO attack drama, as Ether price managed to recover this past week.|
|ETH/USD is currently trading with a bullish trend against the US Dollar, and signaling more upsides.|
|Furthermore, the ETH/USD pair is following a support trend line as displayed on the last 7-days chart, which may be considered as a buy area.|
According to the 2-weeks chart, an upside is favored in ETH/USD, as the technical indicators have turned back north near positive levels after correcting the extreme readings reached after the DAO attack fall.
Ethereum Price To Break Higher?
We can see on the last 7-days chart of ETH/USD, the pair is following a bullish trend line (plotted with a yellow color), which is acting as a bullish bias catalyst. The price is currently trading near the highlighted trend line, suggesting it remains at a risk of either a breakdown or a move higher.
On the downside, a break below the trend line support may call for more losses, which could take ETH/USD towards the $12.80 support area. However, I think that the chance of a break below the trend line is very low, as the price has retreated well from the $10.20 low, and there is a possibility for continuation. For such scenario to happen, ETH/USD needs to break a bearish trend line formed (red color line).
If there is a break above the trend line resistance area, ETH might trade towards the next barrier of $15.50. We can clearly see on the last 7-days chart, the pair is forming a triangle breakout pattern, which can ignite the next move in ETH/USD. So, I think we need to keep a close eye on the pattern resistance and support in order to catch the next move.
Looking at the last 14-days chart of ETH/USD, the situation is almost similar to the 7-days chart. There is a support trend line on the downside (yellow), and there is a resistance trend line on the upside (red color).
In short, there are breakout patterns forming for ETH/USD on the charts, which can open the doors for the next move. I think since the negative sentiments are fading away, there are chances of the price moving higher during the upcoming week.
However, we need to be very careful while trading as the price volumes are signaling a divergence, which is generally not good.