The ETH/USD pair looks like preparing for the next leg as there is a breakout pattern forming on the last 7-days chart.
Ether price struggled against the US Dollar intraday, but the $10.80 level continued to act as a barrier.
There are a couple of breakout patterns forming on both the last 24 hours and 7 days chart of the ETH/USD pair, which may ignite the next move.
The pair is at a major crossroad, as there is a monster support at $10.80, and on the upside the bears are fighting hard. One must give up for the next move.
Ether price needs to gain momentum for a move higher, else in time the sellers may be able to break the all-important $10.80 level.
ETH/USD Approaching Break?
Yesterday, Ether price bounced after a test of the $10.80 level, but it found sellers near $11.60 against the US Dollar, which I stated as a resistance in yesterday’s post. It looks like the ETH/USD pair is repeating the same pattern today.
The pair traded near the $11.00-$10.80 support area, and after grabbing bids recovered. However, the upside is very limited, as there is a bearish trend line formed on the last 24 hours chart (yellow), acting as a resistance.
On the downside, there is a bullish trend line forming on the same chart, providing support to the ETH bulls. So, we can say that there is a breakout forming.
Moreover, if we have a look at the last 7 days chart of the ETH/USD pair, there is another breakout pattern forming (contracting triangle). In short, the pair is approaching a break, and this the reason why I think the price is at major crossroads.
In my view, the chances of an upside move are more compared with a breakdown, but when the price stays above $10.80 support level.
Important Resistance Levels
$11.50 and $11.60
Important Support Levels
$11.00 and $10.80
The RSI indicator is below the 50 level, which is not a good sign in the short term.
The MACD is in the bearish zone, but may soon move into the bullish slope.
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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