ETH/USD Likely To Bounce Back From Recent Losses
|Ether price after testing the $10.80 support versus the US Dollar bounced back sharply.|
|The last few candles on the hourly chart of ETH/USD looks bullish, and signaling a comeback.|
|There is a descending channel pattern formed on the same chart, which must be broken for more upsides.|
Technically, the 4 hours chart shows that the indicators maintain a neutral tone and consolidate near oversold readings.
Ether Price Recovery
Ether price recently extended its losses versus the US Dollar to trade below $11.00. There was a test of $10.80 in ETH/USD, which acted as a perfect barrier for sellers and prevented any further declines.
The pair bounced back sharply and currently back above the $11.00 handle. If we look at the hourly chart of the ETH/USD pair, there is a descending channel pattern formed. It is acting as a major catalyst for the current downtrend.
If the ETH buyers manage to break the channel resistance area, then sellers may step back for some time. The last few candles on the hourly chart look bullish. Now, it’s up to buyers to hold the recent momentum and push the price above the resistance zone.
However, there are many crucial resistances on the upside starting with $11.20, and followed by $11.40. So, a large rally in ETH/USD may be difficult in the near term. The 4-hours chart also points towards the importance of the $11.40 resistance.
There is also a minor bearish trend line on the same chart, which is currently acting as a hurdle and stopping the upside ride. A break above it might call for a test of $11.40. On the downside, the $10.80 support holds key and must contain losses in ETH/USD. In my view, the price may consolidate for some time before gaining further traction.