ETH/USD Continues Sideways Movement With Bearish Tone
|Ether price remained under pressure versus the US Dollar and every minor recovery were sold aggressively.|
|This week’s highlighted range of $11.80-$11.40 is still active, as there was no close yesterday as well.|
|The 4-hours chart of the ETH/USD pair is now signaling a contracting triangle as a breakout pattern.|
Technically, the bullish tone that started this month remains under pressure due to the loss of upward momentum.
Ether Price Consolidation
The Ether is trading along a sideways trend versus the US dollar between the support $11.40 and resistance $11.80. There can be two cases when the price trades in a range. A break higher or lower.
If there is a break above $11.80, the uptrend may be expected to continue to test the next resistance level $12.40. On the other hand, a break of $11.40 support could trigger further losses, taking the price towards $11.00.
The 30-min chart of ETH/USD clearly suggests that how both bears and bulls managed to defend their respective support and resistance successfully. We kind of saw a similar pattern in August as well when I stated that there could be a break sooner or later.
The recent range may also give up at some point of time, but we need to figure out which way it might break. I believe the probability of an upside break is more since the market sentiment is not negative at the moment.
Considering the 4-hours chart of the ETH/USD pair, yesterday we saw a channel pattern. However, it looks like there is a contracting triangle taking shape. The price may be heading towards the $11.00 support where bulls could appear. The triangle is contracting and may soon provide us the next move we are waiting for in ETH/USD. On the upside, the triangle resistance now resides at $11.60.