Ethereum Price Technical Analysis – ETH/USD Consolidation Initiated

Key Highlights

• ETH price after finding resistance near $13.22 against the US Dollar started a consolidation phase.
• It looks like a contracting triangle pattern is formed on the hourly chart of ETH/USD (data feed via SimpleFX) with support at $12.50.
• The pair might test the $12.50-40 support area before making an attempt to move higher once again.

Ethereum price upside move stalled near $13.20 against the US Dollar, and the ETH/USD pair is now consolidating and preparing for the next move.

Ethereum Price Breakout Pattern

Yesterday’s upside move in ETH price came to a halt near $3.20 against the US Dollar. The price later started correcting lower and settled below the $13.00 level. There was already a break below the 23.6% Fib retracement level of the last wave from the $10.987 low to $13.229 high. It looks like the price has initiated a correction phase and at the moment consolidating gains above the $12.50 support area.

Looking at the hourly chart (data feed via SimpleFX), the ETH/USD pair has formed a contracting triangle pattern with support on the downside at $12.50. However, I feel there is a chance of a spike down towards the 38.2% Fib retracement level of the last wave from the $10.987 low to $13.229 high at $12.37. Then, the price may find support and might attempt to trade back above the $13.00 level.

However, it needs to first clear the triangle resistance trend line at $12.80. Only if there is a break and close above $12.80, there is a chance of a move towards $13.00. Overall, the trend is positive for the ETH price, and it may attempt to move back higher.

Hourly MACD – The MACD has reduced the bullish slope, but no sign of a major trend change.

Hourly RSI – The RSI has moved down from the overbought levels, but remains above the 50 level.

Major Support Level – $12.50

Major Resistance Level – $12.80

Charts courtesy – SimpleFX

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