Technically, the pair is currently below its 21 hourly SMA, suggesting a minor bearish pressure.
ETH/USD Range Formation
Ethereum Foundation recently announced their Hard Fork decision to end the DoS attacks. This is the second time they have considered a hard fork. It created a minor bearish pressure on Ether price and nervousness in the market.
The ETH/USD pair was seen trading a few points lower, but remained confined in yesterday’s highlighted range pattern of $11.80-$12.10. The pair was once again rejected around the $12.10 resistance, and currently trading near the lower end of the range at $11.80.
It would be interesting to see whether the Ether bulls can prevent a downside break or not. We can now see a descending channel pattern formed on the 30-min chart, which is taking the price slowly towards the lower end of the range where buyers would be put to test yet again.
I think there is a chance of a spike towards the last swing low of $11.65 this time to complete a perfect fib wave structure of the current cycle. The 2-hours chart is still almost the same, and has a contracting triangle pattern formed.
One important point to note is the fact that the range resistance is acting as a strong barrier compared with the support. There are a lot of rejections on the upside, compared with the number of support tests. I think we can see a minor new low before the price may attempt to trade back higher.