ETH/USD Weekly Forecast: Ether Consolidating Losses
|This past week Ether price started a recovery against the US Dollar and corrected a few points higher.|
|Later, the ETH/USD pair was mostly seen consolidating losses and preparing for the next move.|
|The 12-hours chart of ETH/USD clearly highlights a consolidation pattern, approaching a break.|
Technically, the indicators on the higher timeframe charts are still bearish, suggesting a struggling phase.
Ether Price Still Bearish or Forming Base?
Ether price after trading below the $10.50 level against the US Dollar started a recovery phase. The price moved higher slowly and steadily, but there was no real momentum, as the ETH/USD pair was seen struggling to break a couple of important resistance levels.
The most critical one was the $11.25 resistance. In my last few analysis, I continuously pointed out the significance of the stated level, and highlighted why a break above it is crucial. Only if there is a break above $11.25, there is a chance of a real recovery.
Looking at the 2-hours chart, it is quite clear how the same resistance is protecting an upside move. On the downside, there is a bullish trend line formed, which is holding losses. Overall, it looks like the price is stuck in a range and consolidating losses.
No doubt, any major gains would be very difficult. Even a break above $11.25 won’t clear the path. Looking at the 12-hours chart, there is another crucial barrier around $12.00. As highlighted with the red line, the $11.80-12.00 area was a support earlier, and now may act as a resistance.
The ETH/USD pair at the moment trading inside a contracting triangle pattern. However, it can also be seen as a bearish pennant. It means once it completes, there is a chance of ETH moving lower once again.
On the other hand, I won’t discard a possibility of an upside move as well. There are a few positive signs on the lower timeframe charts, which may ignite a rally in ETH/USD. Overall, I think it’s best to keep a close eye on the highlighted resistances and breakout patterns, and wait for the next move.