Ether Price Forming Inverse Head And Shoulders Pattern?
|Ether price resumed its downtrend against the US Dollar, but managed to find support at $9.80 once again.|
|The ETH/USD pair recovered during the past 24-hours and looks like forming an inverse head and shoulders pattern.|
|The pair is also near yesterday’s bearish trend line on the last 7-days chart, which holds the key for ETH in the near term.|
Ether was unable to outperform the US Dollar this week, but a continuous failure to break $9.60-80 may call for an upside thrust.
Ether Price Break Near?
The ETH/USD pair traded as low as $9.76 during the past 24 hours, and then managed to gain bids to trade back above the $10.0 handle. The price is currently trading with a positive sentiment and if the bulls sustain momentum, there is a possibility of further gains.
There are a couple of interesting structures forming on the last 24-hours chart of ETH/USD. First, there is an ascending triangle pattern, which looks bullish. Second, there is likely an inverse head and shoulders pattern that may act as a catalyst for the upside move.
If the inverse head and shoulders pattern is true, then ETH/USD may easily spike higher and break the triangle resistance for further gains. In this scenario, a breakout resistance is at $10.20.
Now if we look at the 7 days chart of ETH/USD, then the same level come into the picture. Yesterday’s highlighted bearish trend line is sitting at $10.20, and currently acting as a resistance.
I think if there is a close above the trend line resistance, then the inverse head and shoulders pattern might push the price higher towards the next hurdle of $11.20.