Technically, the hourly chart shows that the price has advanced well above its moving averages and currently positioned in the positive territory.
ETH/USD Weekly Gains
Yesterday, I mentioned that the recent moves in Ether price are convincing and calling for more gains against the US Dollar. There was a nice upside reaction in the ETH/USD pair recently, as it traded above $11.60-80 resistance levels to settle above $12.00.
A 4-hour close above $12.00 is definitely a positive sign and shows that Ether bulls won a major battle. Now, they have to stay in action and take the price further higher. On the upside, there is a crucial juncture near $12.50-60.
The stated levels are acting as an offer zone and already prevented an upside move two times. So, the bulls need to clear it soon or it may pose a threat of a downside reaction. There is a bullish trend line formed on the hourly chart of the ETH/USD pair, which can be considered as a trend catalyst.
As long as the price above the trend line support, it may break higher to challenge $13.00. On the flip side, a break below the trend line may call for a short-term correction. In that situation, a test of 38.2% Fib retracement level of the last wave from the $10.25 low to $12.55 high is possible.
We should not discard the importance of $12.50-60. It acted as a major junction earlier (as can be seen in the 4-hours chart of ETH/USD). So, it won’t be easy for the bulls to clear it. Overall, a break above $12.60 could take ETH/USD towards $13.00 else a correction wave may be initiated.