Can Ether Capitalize On Dollar Weakness?
|Ether price remained in a range versus the US Dollar, and failed to gain momentum.|
|The US Dollar is currently under pressure against other currencies, so can the Ether buyers take advantage of the same?|
|There is a major descending channel pattern formed on the 4-hours chart, which must be broken for an upside move.|
Technically, the 4-hours chart points a downtrend, but most indicators are now exhausted, suggesting chances of a recovery.
ETH/USD Range Formation
The Ether recovered some ground yesterday against the US Dollar, but it once again failed to break the range resistance area of $11.80-12.00. The ETH sellers successfully defended an upside break and pushed the price back lower.
On the downside, the range support area of $11.50 acted as a perfect barrier for the sellers. So, there is a continuing range pattern formed as can be clearly seen on the 30-min chart of the ETH/USD pair. As long as the pair is in the range, there can be no substantial move either higher or lower.
However, during the past few hours the US Dollar was seen under a bearish pressure versus other currencies like the Euro and the Japanese yen. So, there is a chance that the Ether may also gain traction against the greenback for a move higher.
When we have a look at the 4-hours chart, then we can clearly see a downtrend in ETH/USD. There is a descending channel pattern formed, which is acting as a catalyst for the current downside move.
Overall, it looks like the pair is ranging, but mostly with a bearish sentiment and a slight downtrend. So, the Ether buyers need to jump in soon if they want to prevent any major break in the near term. A break above the channel resistance trend line may negate the current bearish sentiment.