Ether price may be positioning for a minor downside move due to the recent struggle to break the $14.50 level versus the US dollar.
Ethereum price mostly consolidated against the US dollar, as there was no major movement in ETH/USD.
ETH/USD recently broke a support trend line on the last 7-days chart, which is not a good sign for the bulls.
There is a possibility of a downside move towards the all-important support area of $12.80-$13.00.
ETH pairs are quieter this Monday, although the risk-aversion environment persists as the US Dollar gained some ground across the board.
Ether Price To Correct Lower?
The last 24-hours chart of ETH/USD clearly shows ranging moves with a high around $14.15 and low near $13.65. There is even a contracting triangle pattern forming on the same chart, which may trigger the next move in ETH in the short term.
On the upside, an initial resistance is near $14.10, i.e. the triangle upper trend line. However, I think the most important resistance is near $14.50, as highlighted in the weekly analysis as well. On the downside, the triangle support trend line is near $13.90. A break below it could ignite a downside move, which could take the price towards the all-important support area of $12.80-$13.00.
If we look at the last 7-days chart of ETH/USD, there is a break visible. A bullish trend line formed on the chart was broken recently, which is not a good sign for traders looking to buy ether in the short term.
There are chances of ETH/USD correcting lower towards the support area highlighted with red lines on the chart.
Overall, if the price continues to struggle to clear the $14.20 and $14.50 resistance area, then a downside move is possible.
Important Resistance Levels
$14.10 and $14.50
Important Support Levels
$13.90 and $12.80
The RSI is just below the 50 level, which means the recent break may be real.
The MACD is mostly flat, suggesting the price is in a consolidation phase.
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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