ETH/USD Forecast: Pressuring Key Resistance
|The ETH/USD pair was contained by the $16.00 handle where it failed two times.|
|There is a chance that the pair is forming a double top pattern near $16.00, looking at the hourly chart.|
|The 4-hour chart clearly highlights a congestion resistance area near $16.00.|
Technically, the hourly chart indicators are showing a lot of mixed signals, suggesting caution.
Can Ether Price Break $16.00?
Yesterday, we saw a nice three outside up bullish pattern in ETH/USD. It later resulted in a minor correction, but Ether price managed to hold the $15.20 support zone, and recovered.
The recovery was decent, but the price failed to close above $16.00. It formed a minor new high at $16.03 before declining once again. At the moment, the price is struggling to clear the $16.00 resistance, but at the same time remains supported near $15.20.
When we analyze the recent two failures, there is a chance that the pair is forming a double top pattern near $16.00 on the hourly chart. If the highlighted pattern is true, the price could break the recent low and may trade towards $14.00.
However, there are two solid bullish trend lines with support at $15.20 and $15.00 on the same chart. So, I would say as long as the price is above these trend lines, there can be another attempt to clear $16.00.
Only if there is a close below $15.00, ETH/USD may extend its decline. Otherwise, the possibilities of an upside break or at least a retest of $16.00 is likely.
Looking at the 4-hour chart, there is a clear barrier formed near $16.00. As of now, there is no rejection pattern, which is why the pair remains supported. There are also two trend lines on the downside with the most important one at $13.95.
In short, I would say the price is pressuring the $16.00 resistance. If it succeeds in breaking it, a new high is possible. If it fails another time, there can be an increase in selling pressure.