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. He strives to provide entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession and loves blogging. ETHNews is commited to its Editorial Policy
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