Ether Price Bouncing From Lows, Resistance At $11.20
|Ether price challenged the $10.00 support area against the US Dollar as forecasted in yesterday’s analysis.|
|The ETH/USD pair even traded below the stated level to register a new weekly low of $9.83.|
|The price is currently bouncing from the lows and may face a tough resistance near the $11.20 level.|
The recent bounce in ETH versus the US Dollar is encouraging, but the bulls need to step up the momentum if they have to push the price further higher.
Ether Price Forecast
As forecasted in yesterday’s post, the ETH/USD pair accelerated its slide well below the $10.00 level and posted a new weekly low. However, the pair bounced sharply and closed above the mentioned level.
The hourly RSI corrected partially the extreme oversold readings, taking the price higher during the past 24 hours. Currently, there is an expanding triangle pattern forming on the 24 hours chart, which may act as a catalyst for the next break in ETH/USD after the recent recovery.
The upside move was convincing, as there were a couple of attempts made to clear the triangle resistance area but the bulls failed. Looking at the same chart, it looks like there is a short-term support formed near $10.50 (highlighted with an orange line).
The last 7 days chart clearly shows how the price bounced from the lows, but an important point to note is the increase in trading volumes. It played a major role in taking the price higher, as the bulls stepped and bought ETH aggressively below $10.00.
On the upside, a crucial resistance lies near a bearish trend line formed on the last 7-days chart of ETH/USD. As long as the pair remains below the trend line resistance at $11.20, there is a chance of downside resumption. A recovery above the stated level can see the pair extending up to $11.80, but the market will keep on seeing advances as selling opportunities in the short term.