ETH/USD Weekly Forecast Stable With Question Marks
|Ether price mostly traded in a range after a steep fall against the US Dollar from the $13.50 high to $11.60.|
|There were continuous ranging moves with a slight bearish tone, as can be seen in the 2-hours chart of ETH/USD.|
|Looking at the 12-hours chart, there is a pennant pattern formed, which may ignite the next move.|
Technically, the 2-hours chart indicators are stable and suggesting a short-term bullish wave.
Ether Price Struggle Continues
Yesterday, I highlighted how Ether price was under slight bearish pressure due to the Ethereum Foundation hard fork announcement to end the DoS attacks. There was a minor downside move during the past 24-hours, but the $11.80 support managed to prevent any major declines.
There was a clear buying interest around the stated support, as it also represents the lower end of the range. The 2-hours chart of ETH/USD clearly shows how Ether price is stuck inside $11.80-$12.10, and failed on many occasions to trade higher.
The technical indicators on the 2-hours chart is now stable, which can be considered as the first sign of a possible recovery. However, we need more signs before there can be a break above the $12.10 resistance. It has been acting as a monster barrier for the Ether bulls, and prevented a break many times.
When we look at the larger picture, then the 12-hours chart highlights a couple of important points. First, the price is currently consolidating after breaking a major bullish trend. Second, there was a sharp downside move from the $13.50 high to $11.60 low.
Third, there is a pennant pattern formed, which can break soon to provide us the next move. Generally, such patterns provide a bearish break in a downtrend. However, the technical indicators are converging, suggesting a bullish break.
On the upside, a break above the pennant resistance and the 23.6% Fibonacci retracement level of the last decline from the $13.50 high to $11.60 low is needed for a recovery.