ETH/USD Is Still Looking For Direction
|Ether price is back testing the all-important range resistance near $12.80 against the US Dollar.|
|The ETH/USD pair after yesterday’s dive recovered, but faced resistance near the same old $12.80.|
|It looks like there is a major contracting triangle pattern formed on the 4-hour chart with support at $12.20.|
Technically, the hourly chart indicators are stable, but might move in the bearish territory.
Ether Price Remains Capped Near $12.80
We saw a downside move in ETH/USD recently towards $12.20 where it found support and recovered. It managed to regain the $12.60 level, and attempted a break above $12.80.
However, Ether price faced resistance once again and was not able to decisively break the $12.80 and $12.90 range resistance levels. The hourly chart of ETH/USD shows how the pair was rejected near $12.80.
After the rejection near $12.80, the pair sunk to a couple of lower lows. It looks like there is a bearish trend line formed with resistance at present near $12.70. There was a break of a bullish trend line (formed connecting recent lows) on the chart, which is a slight bearish sign.
However, I do not consider it as a break since the price action is still positive and there was no proper close below the 23.6% Fibonacci retracement level from the recent low of $12.19.
When I move to the 4-hour chart, I see a contracting triangle pattern. It might play an important role in the near term, and suggests that the price is reaching a breakout point.
On the upside, the triangle resistance is near $12.80, and support is at $12.20. The triangle is contracting, so both resistance and support levels may change going forward.
On the upside, I would stick with my previous view. Unless there is a daily close above $13.00, it would be hard to call a break a real upside move.
However, if there is a break below $12.20, it might spark a downside rally. The next major support in that case would be near $12.00.
In my view, the price may attempt another upside break above $12.80 in the short term.