Ether Price Delivers Bullish Follow Through
|Ether price continued to gain traction against the US Dollar and Bitcoin, and managed to trim post Bitfinex hack losses.|
|The current upside move found sellers near $11.20, representing support turned resistance.|
|Going forward, the pair may move down in the short term before buyers step in once again.|
Currently, Ether price is consolidating in its way towards psychological support at $10.00 versus the US Dollar.
Ether Price 3 Wave Correction Pattern
Yesterday, I mentioned that it was a big day for the Ether buyers, as a lot of bullish signs emerged on the charts. Later, there were further gains noted in the ETH/USD pair, as it moved above the $11.00 level.
However, the upside move was stalled near a crucial level - $11.20. The stated level was a support earlier and now acting as a resistance. The pair attempted to break it on a couple of occasions, but failed and started moving down.
During the downside move, the price broke a short-term bullish trend line formed on the hourly chart of the ETH/USD pair. It is a clear signal that the pair may head towards the 23.6% Fib retracement level of the recent wave from the $8.00 low to $11.20 high.
The next support on the downside is $11.00, which is a major psychological level and could act as a buy area. The 4-hours chart is suggesting a clear path for ETH/USD. It looks like the pair has completed the first wave of a 3-wave structure, and may soon head towards $10.00 to complete the second wave.
Once it is over, the price may regain the bullish bias and could trade higher. On the upside, the bulls need to take the price above $11.20 for a move towards $12.00.