ETH/USD Forecast – Ether Forming Bullish Set-Up?
|Ether price fell below the $13.00 handle against the US Dollar recently, and traded as low as $12.92.|
|After facing continuous bids near the stated low, the ETH/USD pair traded sharply higher.|
|There is a rejection pattern formed on the 30-min chart of ETH/USD, signaling further gains.|
Technically, the 2-hours chart is signaling a hammer pattern, which may spark an upside move.
Ether Price Breaks Resistance
Yesterday, I highlighted a short-term bearish scenario for Ether price. It did trade lower, as both ETH/USD and ETH/BTC pairs fell below $13.00 and 0.0215BTC respectively. However, losses were limited, as I mentioned yesterday that Ether price pullbacks are likely to be shallow.
The analysis did play well, as the ETH/USD pair broke the $13.00 handle, but found support near $12.90. The price after trading as low as $12.92 gained bids and traded higher. There is a clear rejection pattern visible on the 30-min chart.
There was also a bearish trend line break noted on the same chart. Furthermore, the price settled above the 38.2% Fibonacci retracement level of the last drop from the $13.26 high to $12.92 low. It is a clear signal that the price was rejected, and currently positioning for a bullish wave.
The ETH bulls need a close above the $13.00 handle for a ride towards $13.25 at least. When we analyze the 2-hours chart, there are a couple of important points to note. First, the price bounced from a support, which was prevented the downside move earlier as well. Second, there is a crucial bullish pattern forming.
The last candle looks like shaping up as a hammer. If the pattern is true, it is a signal of a bullish set-up. The price may surge higher and even clear the $13.20 resistance. In my view, there are enough signs to call for an upside move in the short term at least towards $13.25.