Ether Price Remains In Driver's Seat Versus US Dollar
|Ether price had a good week against the US Dollar, as it managed to recover from the lows and posted gains.|
|The ETH/USD pair closed above a couple of key pivot levels, suggesting bullish signs in the near term.|
|The recent recovery in ETH/USD was stopped around an important triangle resistance formed on the last 14-days chart.|
There is a 5-wave structure forming inside a triangle pattern on the last 14 days chart, which may spark the next move after pattern completion.
ETH/USD Breakout Pattern
This past week the Ether managed to recover against the US Dollar and posted a new 10 days high of $12.30. During the upside, the ETH/USD pair broke a monster resistance area at $11.00-$10.80, which may now act as a support.
The pair has started a correction wave and already moved below the 23.6% Fibonacci retracement level of the last wave from the $10.26 low to $12.30 high, and currently attempting to close below the 38.2% Fibonacci level of the same wave.
If the ETH bears are successful in taking the price further lower, then a test of the all-important $11.00-$10.80 support area is certain, which also coincides with the 61.8% Fibonacci retracement level. In my view the mentioned support area (highlighted on the 7 days chart with orange line) holds a lot value for ETH/USD going forward. If the price tests the stated levels, the ETH bulls may try their best to defend it.
If we have a look at the last 14 days chart of the ETH/USD pair, then there is a large triangle pattern forming. The recent recovery was stopped right at the triangle resistance trend line, which acted as a barrier.
It looks like the pair is forming a 5-wave structure inside the highlighted triangle pattern, and currently it is in the 5th wave. There is a chance that the 5th wave might complete around the triangle support, and then the price could rocket higher.
So, in my view we can keep a close eye on the $11.00-$10.80 support area for bounce and completion of a 5-wave structure in order to buy Ethers.