The ETH/USD pair spiked higher and broke the shackles to register intraday gains. However, the main question here it whether it can continue to gain traction or not?
Ether price made a strong move higher against the US Dollar and tested the $12.00 level.
My view of an upside break in the ETH/USD pair was correct, as the bulls were able to clear a major triangle resistance area.
There is likely a flag pattern forming on the last 24-hours chart, which may act as a catalyst for a short-term consolidation.
Ether buyers got the much needed momentum, and if the recent break is not false there are chances of more upsides going forward.
ETH/USD Upside Break
Ether price after ranging for a brief period around the $11.00-20 support levels gained momentum and traded higher against the US Dollar.
Yesterday, I highlighted a couple of breakout patterns, one on the last 24 hours chart and another on the last 7 days chart. Overall, the view was of a move higher, and the price did gained intraday by around 5%.
The ETH/USD pair is currently forming a descending channel on the last 24-hours chart, which can be a bullish flag pattern. So, there is a possibility that the price may trade inside the highlighted pattern for some time before making the next move.
The last 7 days chart of the ETH/USD pair clearly highlights a crucial triangle break. Currently, the price is struggling near a bearish trend line (orange), which is acting as a short-term resistance.
So, the pair can trade a few points lower in a range, but might find buyers around the $11.20 level. The stated level was a resistance earlier and may act as a support moving ahead.
In my view, the recent break was crucial and shows that the bulls won’t give up easily. We just need to keep a close watch on the $12.00 resistance area for the next leg higher.
Important Resistance Levels
$11.80 and $12.00
Important Support Levels
$11.40 and $11.20
The RSI indicator has turned positive as well.
The MACD is in the bullish zone, calling for more gains in the short term.
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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