Technically, the hourly chart is suggesting a consolidation triangle pattern for the next move.
Can ETH/USD Break Above $12.10?
Ether price was seen attempting a break above the $12.00-10 resistance area yesterday on a couple of occasions. However, the Ether sellers protected the resistance area successfully, and pushed the price lower once again.
The downside somehow found support at $11.80, and currently the price is moving back higher. It looks like there is a consolidation pattern forming on the hourly chart of ETH/USD, which may provide us the next move. The pattern is in the form of a triangle, and holds a lot of importance.
Its upper trend line is crucial, since it is positioned with $12.10. The stated level also represents the 61.8% Fibonacci retracement level of the last decline from the $12.39 high to $11.64 low. The triangle pattern is contracting, and will eventually break either higher or lower.
As long as the price keeps forming lower low, there is a chance of an upside move in the short term. The next stop in that situation could be around the last swing high of $12.40. But first, the Ether buyers need to clear the $12.10 hurdle.
The mentioned resistance holds the key, and it can be clearly seen in the 4-hours chart as well. There are two bearish trend line formed, which are meeting around the same level. It means it won’t be easy for the price to settle above it. However, if there is a break, it may push the price back in the bullish zone.