ETH/USD: Dollar Weakens, But Ether Can’t Rally
|Ether price struggle to gain momentum above $12.70-12.80 continues against the US Dollar.|
|There is a clear bearish trend line with resistance at $12.70 formed on the 30-min chart of ETH/USD.|
|The pair is back in the consolidation phase with a slight bearish bias.|
Technically, the 2-hour chart indicators are losing grip, and slowly moving in the bearish territory.
Ether Price Eyeing an Upside Move?
It was a tiring session for Ether traders, as there was hardly any major move in ETH/USD. The price remained confined in a range with a strong barrier at $12.70. It also represents the 50% Fibonacci retracement level of the last decline from $12.81 high to $12.53 low.
During the last US session, the dollar was under a bearish pressure. FOMC Minutes published failed to impress the investors, as there was no proper signal regarding the next interest rate hike. As a result, the dollar was sold across the board, but Ether failed to rally.
There were 2-3 attempts to clear the range resistance area, but there was no close above $12.70-12.80. However, as of writing, the pair is challenging a bearish trend line on the 30-min chart.
There is a chance of a break above the trend line and $12.70, which can open the doors for a complete test of $12.80. The stated level is the next major barrier for the current ongoing range.
If the price fails to settle above the trend line, it may move down to test a bullish trend line with support at $12.60 on the same chart.
Looking at the 2-hour chart of ETH/USD, there is a descending channel in making. The channel resistance looks critical as it coincides with $12.70, and held the upside move on 4-5 occasions.
On the downside, the channel support is at $12.20, which was also the recent swing low. Overall, there can be a couple of upside break attempts, but until there is an increase in momentum, ETH/USD can’t rally.