ETH/USD Weekly Forecast – More Gains Expected
|Ether price surged higher yesterday against the US Dollar, and looks set for further gains.|
|The broken resistance area at $11.00 is now acting as a support for the ETH/USD pair.|
|The pair broke a bearish trend line on the 12-hours chart, and may be approaching another on the upside.|
The technical indicators on the higher time frame charts are now changing direction, which is a positive sign for buyers.
Ether Price Heading Higher?
Ether price gained yesterday against the US Dollar, Euro and Bitcoin due to loss of downside momentum. The ETH/USD pair broke a couple of important resistance levels on the 4-hours chart to register intraday gains.
The hourly chart is now showing positive signs, as the pair settled above a crucial resistance area of $11.00. The price recently found sellers near $11.40 and moved lower, but the $11.00 level came in rescue as it acted as a support (as shown on the hourly chart with yellow lines).
It is very likely that the Ether buyers may protect downsides at $11.00 and gain momentum for another upside ride. The stated level also represents the 38.2% Fib retracement level of the last wave from the $10.57 low to $11.39 high. So, there are high chances of it acting as a buy zone.
If we move to the 12-hours chart of ETH/USD, then there are two important things to note. First, the pair moved above a short-term bearish trend line (highlighted with blue), which is a positive sign. Second, the pair may be heading towards the next bearish trend line on the same chart (yellow).
So, the pair may continue to rise in the near term, but there is a crucial barrier waiting on the upside around $11.60-80. It may turn as a resistance and prevent gains.
However, if the Ether buyers succeed in breaking it, then ETH/USD may test $12.50 going forward. In my view, the recent signs are encouraging, but we need more signals for sustained bullish bias.