Ether Price Modestly Bearish Within Range
|Ether price traded towards $13.25 against the US Dollar once more, but sellers protected it successfully.|
|There was a double top pattern formed near $13.25, which ignited a downside move.|
|The price is currently trading near a support trend line formed on the 30-min chart.|
Technically, Ether price has accelerated its decline below the 21 SMA.
ETH/USD Downside Acceleration
It looks like the $13.25 level is acting as a major barrier for the Ether price versus the US Dollar. There were 2-3 failure noted around the stated level, and there was even a double top pattern formation.
The 30-min chart clearly shows the pattern, and how ETH/USD accelerated the downside move. There was a sharp downside move, which took the price below the 50% Fib retracement level of the last wave from the $13.04 low to $13.27 high.
However, the downside move found support near a bullish trend line. It is currently acting as a strong hurdle for the Ether sellers, and protecting further losses. As long as the price is above it, there lies hope of a recovery. Else, a break below it may call for a complete test of the last low at $13.04.
When we look at the 2-hours chart of ETH/USD, there is a clear resistance at $13.25. More than three failures can be noted, igniting a downside wave. I have also drawn a support trend line on the same chart, which I think is acting as a bid area.
I think we can consider this as a breakout pattern on the 2-hours chart, which can trigger the next wave in ETH/USD. Earlier, I was more on the bullish side, but now I think the technical indicators are signaling more losses in the short term. A break below the support trend line may take the price towards $12.80.