In the short term, the technical structure favors more losses and a bearish bias for Ether versus the US Dollar. However, the $12.80 support area may produce a bounce moving ahead.
Monitor $12.80 in ETH/USD
Ether price is pushing lower against the US Dollar, as there was a failure to move above the $13.80-$14.10 resistance area. Our yesterday’s buying with a break idea was not triggered, as there was no clear break above the trend line resistance.
Currently, the hourly chart of the ETH/USD pair clearly points towards a bearish break. There was a contracting triangle pattern, which was cleared by Ether sellers recently to push its price down. In my view, the recent downside move in ETH/USD could trigger further losses in the short term.
A move towards the 61.8% Fib retracement level of the last leg from the $12.18 low to $14.00 high is very likely, which is around $12.90-$12.80. The mentioned levels hold a lot value and may act as a major barrier for sellers.
The importance of the same level can be visible on the 4-hours chart as well. There is a contracting triangle pattern, and the lower support trend line coincides with the stated level ($12.80).
Overall, there is a chance of a continuing weakness in ETH/USD, but the $12.80 support area may be able to protect a downside break and could even produce a bounce. However, we need to keep monitoring the triangle pattern for the next break.