ETH/USD Forecast: Resistance Turned Support
|Ether price reached a new weekly high yesterday at $10.22 against the US Dollar, and moved down.|
|The ETH/USD pair traded towards the $9.80-$10.00 area, which was a resistance earlier and currently acting as a support.|
|There is an expanding triangle pattern formed on the 4-hours chart of ETH/USD, acting as a resistance.|
Technically, the hourly chart indicators have turned north with the RSI around 45 and the Momentum still neutral.
Can Ether Price Bounce Again?
The Ethereum network 4th Hard Fork was successful yesterday, but it hardly helped Ether price in gaining momentum. Before the hard fork, the price made up ground, but later trimmed most of its gains.
Ether price after trading as high as $10.22 against the US Dollar started a downside move, and traded below the 50% Fibonacci retracement level of the recent wave from the $9.45 low to $10.22 high.
However, there was a strong reaction around the $9.80 support area. As we saw earlier, the stated level acted as a barrier for upsides, and this time it prevented losses in ETH/USD.
The price is currently trading above the highlighted crucial support area on the hourly chart and consolidating losses. On the upside, the $9.90-$10.00 levels may act as a resistance in the short term. A break above it could open the doors for a move towards the last swing high of $10.20.
The 4-hours chart of ETH/USD highlights an interesting scenario. First, the broken resistance trend line is currently acting as a support at $9.70. Second, there is an expanding triangle pattern forming with resistance at $10.20 and support at $9.60.
It looks like the highlighted triangle pattern may play a key role for ETH/USD movements in the short term. If there is a break above the triangle resistance, it may set the pace for further gains in Ether price.