ETH/USD Short-term Bearish In Range
|Ether price continued its struggle to gain momentum above 10.00 against the US Dollar, resulting in a minor downside move.|
|The ETH/USD pair broke a contracting triangle on the hourly chart at $9.70.|
|If the break is real, there are chances of a downside move back towards the $9.40 level.|
Technically, the hourly chart indicators are about to move into the bearish territory.
Ether Price Hesitates, Short-term Losses Likely
It looks like Ether price is finding it very difficult to move past the $10.00 resistance area against the US Dollar. It recently ran through offers near $9.80 and moved down.
During the downside move, the ETH/USD pair broke a contracting triangle pattern on the hourly chart at $9.75, opening the doors for further losses. But, there was no major increase in selling pressure and momentum.
However, the price was able to go pass the 23.6% Fibonacci retracement level of the last wave from the $9.14 low to $10.00 high. If the highlighted break is real, there is a chance of ETH/USD accelerating the downside.
In that case, there can be a test of the 50% Fibonacci retracement level of the last wave from the $9.14 low to $10.00 high. In my view, the price remains range bound, and the recent break is only to ignite a short-term downside move towards the $9.50-9.40 support area.
The mentioned range is clearly visible on the 4-hour chart of ETH/USD. The pair mostly consolidated recently, and there was no major movement.
On the upside, there is a crucial resistance near $10.00. Also, there is a bearish trend line on the same chart, which is just above $10.00.
It looks like ranging moves may continue in the short term, but the price needs to make a move soon. If the $10.00 resistance keeps acting as a barrier for more gains, there can be an increase in selling pressure for a downside break.