Technically, the 2-hour chart indicators extended declines below the mid-lines in the bearish territory.
Ether Price Heading Towards a Break?
There was no respite for Ether buyers, as the price failed to hold the bullish momentum against the US Dollar. The price action was even worse for ETH/BTC, as the pair declined towards 0.036BTC.
It is quite clear looking at the 2-hour chart of ETH/USD that the pair is forming a lower high pattern. There is a crucial bearish trend line formed with resistance near $45.00-45.10.
The last decline was the result of a failure to break the same trend line at $47.40. It’s a descending trend line with current resistance at $44.90. There is also a connecting bearish trend line just below it at $45.00.
The price recently declined towards $42.50 where it found support, a good sign, since there was no test of the last swing low of $41.12. As per my yesterday’s view, as long as the price stays above the last swing low, the price could recover in the near term.
A connecting bullish trend line is forming with support at $42.60. We can say that there is a contracting breakout pattern forming with resistance at $45.10 and support at $42.50. A break below $42.50 may call for a test of $41.12.
Similarly, a push above $45.10 might ignite an upside move towards $47.50 or even $49.00 resistance. Looking at the 6-hour chart, there is a clear gloom building near the $48.00- 49.00 resistance.
If the price moves higher, it won’t be easy for Ether buyers to clear the mentioned resistance. In my view, we may see a few more ranging move before the price makes an attempt to break $49.00.