ETH/USD Forecast: Strong Bounce, Bulls in Charge
|Ether price jumped sharply against the US Dollar, and broke a lot of resistances on the way up.|
|Yesterday’s highlighted double bottom pattern near $7.00 played well in pushing the price higher.|
|The price surged higher, and traded above the $8.00 handle posting a new intraday high of $8.19.|
Technically, the indicators on the 4-hour chart turned bullish and extending moves in the positive zone.
Ether Price Trend Change
Yesterday, I highlighted a double bottom pattern on the hourly chart of ETH/USD, and mentioned that a break above the $7.30 level is needed for the pair to gain traction.
The pair did break the stated resistance, and also managed to surpass many other important resistance levels. The most crucial barrier for an upside move was $7.50. It was also cleared.
Lastly, there was even a break above the $8.00 handle, which is a great sign for the Ether buyers. It means the short-term trend change has changed, and the market sentiment also improved.
The ETH/USD pair traded as high as $8.19, and then started consolidating gains. There is a narrow range formed on the hourly chart with support near $8.00. There are chances that the pair may now extend the current correction, and continue trading higher.
The next stop should be near $8.50. When we look at the 4-hour chart of ETH/USD, there are two clear breaks visible. First, above the $7.50 resistance. Second, the $7.90-$8.00 hurdle was cleared. All in all, there was a bullish break in Ether price, suggesting more upsides in the near term.
Buying dips strategy may now work since there are many bullish signs on both the hourly and 4-hour chart. The broken resistance levels like $8.00 and $7.50 might now act as a support if a correction wave is initiated.