Technically, the 2-hour chart indicators are struggling to move into the bullish territory.
Ether Price Breakout Pattern
Yesterday, we saw how Ether price recovery was capped by the monthly pivot at $10.00 against the US Dollar. Since then, the price was seen trading in a range and consolidating losses.
Looking at the 30-min chart of ETH/USD, there is an ascending channel pattern formed, which is acting as a consolidation pattern. Now, we can also consider this as a flag pattern.
If this is a flag pattern, then once it completes, it could open the doors for yet another downside move. On the other hand, if it’s not a flag. It could just help the price in gaining bids.
On the downside, the channel support is near $9.50, which is also around the 50% Fibonacci retracement level of the last wave from the $9.14 low to $10.00 high. So, the stated support holds the key and may act as a pivot or breakout level in the short term.
If the price moves below $9.50, it could clear the way for another downside push towards $9.20. On the upside, there is only channel resistance trend line as a hurdle for gains. If the pair manages to surpass it, there could be a move towards $10.00.
The 2-hour chart suggests that the pair is about to reach a breakout zone. There looks like a contracting triangle pattern, which is about to complete. The last H2 candle looks bearish, and suggesting a downside move.
Overall, it looks like the price may soon complete the current consolidation pattern for the next move depending upon the break.