ETH/USD Forecast – Forming Base, Waiting For a Break
|Ether continued to find buyers around the $11.00-$10.80 support against the US Dollar.|
|It looks like the ETH/USD pair is forming a base and may trade higher or recover in the short term.|
|A consolidation pattern is forming on the hourly chart, which may provide us the next break.|
The 4-hours chart is signaling that sellers are exhausted and may give up anytime going forward.
Ether to Gain V/s US Dollar?
Ether sellers struggle to clear the $11.00 support versus the US Dollar continued during the past 24 hours. There were at least 4-5 attempts to surpass the stated support, but the ETH bulls managed to defend losses successfully.
If looks like a base is forming for a ride higher in the short term. There is a contracting triangle pattern on the hourly chart of ETH/USD taking shape with a perfect 5-wave structure. If it plays well, then it could open the doors for an upside break.
On the downside, I reiterated many times that $11.00-$10.80 is a crucial support area, and it won’t be easy for sellers to break it. On the upside, a break above the highlighted triangle resistance and the 23.6% Fib retracement level of the last drop from the $12.65 high to $10.92 low may ignite buying pressure on ETH/USD.
On the other hand, a break and close below $11.00-$10.80 could negate the current recovery bias. However, the mentioned levels hold a lot of significance, as can be seen on the 4-hours chart as well. It acted as a major pivot area earlier, which is why sellers are finding it hard to break it.
In my view, if sellers continue to fail, the ETH/USD pair may start to move higher, and a break above $11.40 could take the pair towards $12.00.