The current price action after a corrective rally in Ether price suggests that it might range trade for a couple of sessions before making the next move.
Ether Price to Move Higher?
This past week the ETH/USD pair made many attempts to break the $9.80-60 support area, but the bears failed. As a result, there was an upside move, taking the price back above the $10.00 level. The pair broke a couple of crucial hurdles and then finally found offers near the $11.50-60 resistance area.
The recent rally in the pair stopped right around a major resistance area, as can be clearly seen in the last 7-days chart of ETH/USD. It started correcting lower, but the broken resistance area acted as a support.
The price is currently trading near the $10.70-80 support zone, which is acting as a barrier for a breakdown. It also represents the 38.2% Fib retracement level of the last leg from the recent low to $11.30 high. Looking at the chart, it looks like the pair may consolidate for some in the highlighted range before it makes the next move.
The reason I think the chance of a move higher is very high is the last 14-days chart of ETH/USD. There are a couple of important points to note. First, the pair broke two critical bearish trend lines during the upside move. Second, there is likely a double bottom pattern forming on the chart as highlighted with orange circles.
If the double bottom pattern is true, then there is a possibility that Ether price could move towards the $13.00 handle. However, in order to achieve it, the ETH bulls have to break an important barrier.
There is a major confluence area at $11.60-80, which acted as a support and resistance many times earlier. Only a daily close above it could push the price further higher may be towards $13.00.