Ether Price Weekly Analysis – ETH/USD Approaching Crucial Break
|Ether price mostly traded in a range against the US Dollar this past week, but with a slight downward momentum.|
|There is a monster contracting triangle pattern formed on the 4-hours chart of the ETH/USD pair, which can provide us the next break.|
|The daily chart of the pair highlights that the $12.00-$11.80 support area holds a lot of importance moving ahead.|
Technically, there was a minor shift in the market sentiment for the Ether. Going forward, we need to see whether the buyers can protect the $11.80 support area or not.
What’s next for ETH/USD?
In my last analysis, I highlighted that Ether price is trading in a range against the US Dollar with support at $12.00-$11.80 and resistance at $13.00-$13.20. The price did continue to move inside the mentioned range, but currently at the lower end of that region.
One important aspect to note about the range is the fact that it is shrinking. Looking at the 4-hours chart of the ETH/USD pair, there is a contracting triangle pattern formed. The highlighted triangle clearly shows that the price is approaching a monster break in the short term.
As I mentioned, the range is contracting. So, the range support is now at $12.00-$11.90, and the resistance is at $12.80-$13.00. We need a proper 4-hour close on one side to justify a break.
In my opinion, the range support area holds a lot of significance, as it also represents the 76.4% Fib retracement level of the last leg from the $10.99 low to $15.13 high. The reason why I think the $11.80 support area is significant is due to the daily chart. It shows that the bears struggled a lot around the stated level and failed on many occasions to break it.
However, the current market sentiment is not favoring the Ether buyers at all. So, there lies a risk of a breakdown in ETH/USD moving ahead.
I also suspect a flush pattern in the pair after a break. I mean, if there is a break below the range support area, then the price may collapse (flush), and then recover quickly.