Technically, the 2-hours chart suggests that the pair is forming a breakout pattern.
ETH/USD Failure near an Important Resistance
There was a decline in Ether price yesterday against the US Dollar, but the $10.50 support area prevented the downside move successfully. On the other hand, the ETH/BTC pair was seen struggling and remained under a bearish pressure.
When we look at the 30-min chart of ETH/USD, there are a few important points to note. First, the pair failed on many occasions to break the $11.25 level, which means it is a crucial resistance. Second, there is a bullish trend line formed, which is currently acting as a support area.
Lastly, the technical indicators are turning positive, which is a good sign and may lift the market sentiment in the short term. If there is a successful break above the $11.25 resistance, then the chances of further upsides may increase.
An initial support on the downside is around the trend line, and the 50% Fibonacci retracement level of the wave from the $10.36 low to $11.25 high. However, the most important support is near $10.50, and there is one more reason why it’s crucial.
When we look at the 2-hours chart of ETH/USD, there is a breakout pattern in the form of a triangle. Its support is at $10.50. So, the stated level holds a lot of value in the short term. Similarly, on the upside, the $11.25 is significant as resistance. A break on either side could open the doors for the next move.