ETH/USD Forecast: Light Trading Post Christmas
|Ether price continued to face resistance near the $10.40 level against the US Dollar.|
|There is a major confluence resistance formed near $7.40, looking at the 4-hour chart of ETH/USD.|
|On the downside, the $7.10 support is intact, and may continue to act as a barrier for losses.|
Technically, the indicators on the hourly chart suggests consolidation and range moves.
Ether Price Range Pattern and Resistance
There was no real move in Ether price during the past 24 hours against the US Dollar and Bitcoin. The price mostly trading in a range with a slight bearish tone.
When we have a look at the hourly chart of ETH/USD, it looks like there is a range pattern forming. On the upside, the $7.40 level is acting as a major resistance and prevented upsides on more than three occasions.
On the downside, the $7.10 support just managed to hold losses. There was a break below the stated support once, but the pair quickly recovered.
However, the pair is continuously facing sellers near $7.40, which is acting as a hurdle for a push higher. We need to keep in mind that the $7.50 level is also a crucial resistance on the upside.
When we move on to the 4-hour chart of ETH/USD, there are two bearish trend lines formed. Both are acting as a resistance on the upside together and preventing gains. The interesting aspect is the fact that the trend lines are positioned near $7.40.
Moreover, the same level represents the 23.6% Fibonacci retracement level of the last drop from the $7.98 high to $7.02 low. So, it looks like the $7.40 resistance is a critical barrier for buyers on the upside. As long as the price is below it, there can be another test of $7.10.
Only a successful H4 close above the highlighted resistance area could trigger additional gains in ETH/USD.