Ether Price Approaching Break Vs Dollar?
|There were continuous range moves in Ether price against the US Dollar with a cap near $12.90.|
|The 2-hour chart of ETH/USD points a contracting triangle formation as a breakout pattern.|
|There are a few signs, suggesting a possible upside break in the short term.|
Technically, the 2-hour chart indicators remain in the bullish territory with no major signs of uptrend exhaustion.
ETH/USD Technical Outlook
It was a treat for range traders during the past 2-3 days, as Ether price mostly consolidated. Selling highs near $12.90, and buying dips near $12.60 was the main trend.
The price is still trading in a range, but slowly there are signs emerging for the next possible break. There is a contracting triangle pattern formed on the 2-hour chart of ETH/USD.
The triangle lower trend line is near $12.60, coinciding with the range support. The triangle resistance is near $12.80, meaning a push would test the range high at 12.90-13.00.
Unless there is a proper close above $13.00, a real break should not be considered. As long as the range resistance is intact, there can hardly be any major gains in the near term.
For a downside break, the most important barrier seems to be at $12.60 and $12.50. A close may open the doors for a move towards $12.20.
Let us look at the 30-min chart. It shows that the price is currently bouncing from the lows, and heading towards a bearish trend line break. If there is a break, the range high at $12.90 might be tested soon.
There were many rejections near $12.90, highlighting a real hurdle for ETH/USD to clear the range resistance. In my view the trend is still positive, suggesting either continuing range or an upside move.