Ether Price Bounces After Downside Thrust
|Ether price extended its correction against the US Dollar as forecasted yesterday, and tested the $11.00 support area.|
|The ETH/USD pair bounced sharply after testing the stated level, as highlighted in the weekly analysis.|
|It looks like the price is currently setting up for more gains if the ETH bulls remain in control.|
Ether price bullish outlook is still alive as long as it is above $11.00-$10.80, and currently signaling further appreciation versus the US Dollar.
ETH/USD Remains Buy?
In the weekly analysis yesterday, I highlighted a couple of important things. First, a 5-wave structure inside a triangle pattern on the 7-days chart. Second, I pointed out the significance of the $11.00-$10.80 support area.
The price did move down to complete the 5-wave structure, testing the stated support area and finally gained bids for a move higher. The price is currently trading higher and during the upside move it broke a bearish trend line formed on the last 24-hours chart.
The ETH/USD pair outlook is currently positive, as there is also a bullish trend line formed on the same chart, which is acting as a support area.
If we look at the last 7 days chart of the ETH/USD pair, then there was a crucial break. The ETH bulls were successful in breaking a monster descending channel pattern, which is a clear signal of further gains in the near term.
An immediate resistance is at $11.60, and a break above it could be a sign for possible new wave up towards the all-important $12.00 level. On the downside, an initial support lies at $11.20. However, the most vital support is at $11.00-$10.80, which must hold if the uptrend has to remain intact.