The ETH/USD pair showed a lot of resiliency and bounced once again from yesterday lows. Can it break and trade higher? Let’s try to find out.
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.
Important Resistance Levels
$10.20 and $10.50
Important Support Levels
$9.80 and $9.60
The RSI is also above the 50 level, which is a positive sign for the bulls.
The MACD has just moved into the bullish zone, which can be an early sign of a break.
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial marketsETHNews is commited to its Editorial Policy
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