Ether price may be positioned for the next break, as a ranging pattern is forming on the hourly chart of ETH/BTC with eyes on a downside move.
Ethereum price created a new high against Bitcoin, as ETH/BTC traded as high as 0.0276BTC.
The price is currently forming a consolidation pattern and looks poised for the next move.
The chances of a breakdown is more as there is a divergence signal forming on the charts.
The current price action in ETH suggests that the price is losing momentum, and if the bulls lose control, ETH/BTC may test 0.0260BTC.
Ether Price Range
ETH after bouncing from the 0.0255BTC support area moved above 0.0270BTC to trade as high as 0.0276BTC where there were offers presented. The price moved down and tested the 23.6% Fib retracement level of the last move from the 0.0257BTC low to 0.0276BTC high.
Currently, the price is trading in a range and forming a consolidating pattern for the next move as seen on the 24-hours chart of ETH/BTC. The price is at the moment testing the range support and looks like struggling to hold it.
If the price breaks the range support, then ETH/BTC might easily drift lower towards the 0.0260BTC support area or test the 61.8% Fib retracement level of the last move from the 0.0257BTC low to 0.0276BTC high.
ETH is also testing a crucial support trend line, which is clearly visible on the last 7-day chart of ETH/BTC. So, the bulls need to be very careful in the short term if planning to enter a buy trade.
The chances of a downside move are more, as there is a divergence visible between trading volumes and the price.
I think selling with a break can be considered in the short term with a stop above today’s high.
Important Resistance Level
Important Support Level
The RSI is below the 50 level, calling for a downside break.
The MACD is about to change the slope to the bearish zone, which is not good for the bulls.
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial marketsETHNews is commited to its Editorial Policy
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