Ether price was looking for a direction during the day yesterday and later it gained bullish traction for a move higher against both US dollar and BTC.
Ether Price Rebound
The ETH/USD pair after a continuous struggle managed to find strong buying interest near $9.60-80, and traded higher. In yesterday’s analysis, I highlighted an important inverse head and shoulders pattern on the last 24-hours chart of ETH/USD, and was hoping a break higher.
The price did move higher and broke the pattern neckline resistance of $10.20 to trade above $11.20. ETH/USD traded as high as $11.40, and started correcting lower.
Currently, the price is testing a crucial support area, as there is a bullish trend line (yellow) formed on the 24 hours chart, acting as a barrier for sellers. Moreover, the previous resistance area of $10.60-40 is now acting as a support for Ether price.
Looking at the last 7 days chart of ETH/USD, there was another major break. This week I continuously highlighted a bearish trend line, and mentioned its significance. Yesterday, the ETH bulls finally managed to break the trend line resistance, which is a positive sign in the near term.
The same trend line is currently acting as a support, and as long as the price is above $10.20, there is a chance that ETH/USD may resume its upside move after completing a correction wave.