Ether Price Holding Range; Short-Term Outlook Negative
|Ether price mostly traded in a range with a slight bearish sentiment against the US Dollar.|
|There was a break below yesterday’s highlighted contracting triangle pattern formed on the hourly chart of the ETH/USD pair.|
|However, the break does not look convincing, and may turn out to be a false one.|
In terms of support, there is a major barrier for sellers on the downside at $12.00, which can produce a bounce later.
ETH/USD False Break
Ether price is slightly down on Friday morning, with trades being conducted at around $12.60 against the US Dollar. The ETH/USD pair continued its struggle to clear the $13.00 resistance area, and managed to break below yesterday’s highlighted contracting triangle pattern formed on the hourly chart.
However, I am not at all convinced whether the recent triangle break is correct. I think it may be a false break, as there was no major move after it. It looks like the price is mostly ranging with a downward slope.
In my view, until the price sustains its strength above the $13.00 resistance, it is likely to make a fresh attempt to move back towards $12.00. There was hardly any major move in the ETH/USD pair during the past 24-hours. So, technically my view still remains as it was yesterday. I believe there is a possibility of a test of $12.00.
The stated level holds a lot of importance, and it can be easily seen in the 4-hours chart. There were a couple of rejections around the mentioned level (highlighted with grey).
However, at the same time, we should also keep a track of a bearish trend line on the same chart, which prevented an upside move on many occasions. In short, on the upside $13.00 as resistance is important, and $12.00 as support on downside is crucial.