September 8, 2016 11:55 AM
Ether price struggle to clear yesterday’s range pattern continued against the US Dollar, but it was mostly under bearish pressure.
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.
Important Resistance Levels
$11.60 and $11.80
Important Support Levels
$11.40 and $11.00
The RSI technical indicator is bending lower as Ether price declines after testing the range resistance.
The MACD is placed well in the bearish zone and signaling more losses.
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis. He strives to provide entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession and loves blogging. ETHNews is commited to its Editorial Policy
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