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.