The ETH/USD pair found fresh bids near $10.40 and now attempts to regain $11.20 amid renewed optimism. Can the ETH bulls manage to take the pair above the mentioned level?
Ether price surged higher against the US Dollar and broke an important resistance area of $10.80.
The ETH/USD pair cleared a consolidation pattern formed in the last 24-hours chart to open the doors for an upside move.
The price traded above the $11.00 resistance and currently attempting to regain the all-important $11.20 barrier.
Ether price held steady yesterday and managed to recover some ground. The upside move was convincing, and looks set to extend further.
ETH/USD Upside Remains Corrective?
The ETH/USD pair was in a downtrend yesterday, but after trading near $10.40 it found bids and started to gain traction. There was an upside move with a push above a crucial resistance area of $10.80.
The key point is that the pair broke a consolidation pattern on the last 24-hours chart to clear the way for further gains. However, the upside move was stalled around yet another critical resistance area of $11.20. It represents the previous swing area, and may act as a major barrier for the bulls.
So, there is a chance of a minor downside reaction in the short term, which could find support near a bullish trend line formed on the last 24 hours chart. Only a break below the highlighted support trend line may extend the corrective rally in ETH/USD.
If we have a look at the last 7-days chart of the ETH/USD pair, then there is another significant break visible. There was a bearish trend line cleared during the upside drift.
However, it can also be noticed from the chart that the price is struggling near the $11.20 resistance area. In my view, the recent bullish swing was convincing, and there is a chance of an uptrend resumption after a minor correction in ETH/USD.
Important Resistance Levels
$11.20 and $11.40
Important Support Levels
$10.80 and $10.60
The RSI indicator is positioned above the 50 level, which is a positive sign for the bulls.
The MACD after staying in the bullish zone started to bend down, suggesting a correction is very likely.
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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