ETH/USD Sells Off, Target Additional Weakness
|Ether price after testing the $13.00-20 resistance area against the US Dollar failed, and started to move down.|
|The ETH/USD pair is currently trading near a major support area. A break below $12.40 could trigger additional weakness.|
|There is a contracting triangle pattern formed on the hourly chart of the ETH/USD pair, which may ignite the next move in the short term.|
Technically, there are mixed signals. A lower time frame chart (1-hour) suggest additional weakness. On the other hand, the 4-hours chart has a bullish pattern pointing towards more gains.
ETH/USD Downside Move
Yesterday (July 27), Ether price attempted to break an important resistance area of $13.20 against the US Dollar, but failed. There were two failures noted around the stated level, and a bearish trend line on the hourly chart acted as a barrier for more gains.
As a result, the price moved down, and is currently trading below $12.80. There is a contracting triangle pattern formed on the hourly chart of ETH/USD, which may act as a catalyst for the next break.
Currently, the pair is trading near the triangle support area and getting bids. However, the last 4-5 candles are pointing additional weakness. So, there is a high possibility of price moving below the triangle support area. In that situation a test of the $12.00 support area is likely.
The 4-hours chart of the ETH/USD pair is pointing to mixed signals. There is a bearish trend line, acting as a resistance on the upside. On the other hand, there is a hammer pattern, which is a bullish sign and called an upside move as highlighted in yesterday’s post as well.
In my view, there can be a downside break in ETH/USD today (July 28). A test of $12.00 is on the cards.