This Technical Pattern Suggests Ethereum Is Gearing For Another Lift-Off

Ethereum is trading nicely above the $162 and $158 support levels, similar to bitcoin above $8,500. ETH price is likely forming an inverse head and shoulders pattern, suggesting a fresh increase.Ether price is currently consolidating above the $162 support area against the US Dollar.Bitcoin price is finding a strong buying interest above the $8,500 support area.There is a key bearish trend line forming with resistance near $170 on the hourly chart of ETH/USD (data feed via Kraken).The pair could rally if it clears the $168 and $170 resistance levels in the near term.Ethereum Forming Bullish Breakout PatternRecently, we saw a downside correction in Ethereum from the $180 resistance area against the US Dollar. ETH price corrected lower below the $170 and $166 support levels.Moreover, there was a close below the $170 level and the 100 hourly simple moving average. Finally, there was a spike below the $162 support, but the $160 area acted as a strong buy zone.A swing low is formed near $160 and the price is currently recovering. Ethereum climbed above the 23.6% Fib retracement level of the recent drop from the $179 high to $160 low.At the outset, it seems like the price is forming an inverse head and shoulders pattern with resistance near the $170 area. Besides, there is a key bearish trend line forming with resistance near $170 on the hourly chart of ETH/USD.Ethereum PriceThe 50% Fib retracement level of the recent drop from the $179 high to $160 low is also near $170. Therefore, a successful close above the $170 resistance area is needed for a fresh increase towards the $178 and $180 resistance levels. Any further gains could lead the price towards the $200 area.Pattern Invalidation For ETHOn the downside, the main support for the possible inverse head and shoulders pattern is near the $162 area. If there is a bearish close below the $162 support, the price is likely to invalidate the highlighted inverse head and shoulders pattern.The next key supports are near the $160 and $158 levels. If Ethereum fails to stay above the $158 support, there is a risk of a larger decline in the near term. In the mentioned case, the price is likely to decline towards the $150 and $148 levels.Technical IndicatorsHourly MACD The MACD for ETH/USD is struggling to gain momentum in the bullish zone.Hourly RSI The RSI for ETH/USD is currently above the 50 level, with a positive angle.Major Support Level – $160Major Resistance Level – $170

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