Ether Weakening Due to Dollar’s Strength?
|Ether price after a move higher started to slowly move down against the US Dollar.|
|The US Dollar showed a lot strength during the past few days due to rumors of rate hikes by the Federal Reserve.|
|The ETH/USD pair is currently trading near a major support area of $11.00-20, which must hold if the pair has to recover.|
Fundamentally, the Fed’s Janet Yellen speech in Jackson Hole lifted the market sentiment in favor of the US dollar in the short term.
Ether Price Bearish?
There was an excitement when there was a nice upside move in Ether price against the US Dollar. The ETH/USD pair traded towards the $11.50, but failed to holds gains. The $11.40-50 levels acted as a major resistance and prevented an upside move.
The pair made a few attempts to trade further higher, but sellers prevented a break. ETH price is now trading with a slight bearish tone, and following a resistance trend line on the 2-hours chart (as shown in the chart).
On the downside, there is a monster support at $11.20-00. The mentioned levels are a major barrier for sellers. It won’t be an easy job for sellers to clear it. Even the $10.80 area holds a lot of importance, as I have reiterated a lot many times earlier. These support levels are clearly shown in the 2-hours chart of ETH/USD.
Looking at the charts, it looks like the pair is stuck in a major range. On the downside $11.00 is a crucial support and on the upside $11.50 is a barrier for bulls.
We can also see the range clearly on a higher timeframe chart like H12. The 12 hour chart of ETH/USD clearly shows how the price is moving inside a range. In my view, there can be bearish moves in the short term. However, in the medium term the price is ranging before it decides to break it for a move higher towards $14.00.