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

Disclaimer: The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. It should not be regarded as investment/trading advice. All the information is believed to come from reliable sources. NewsBTC does not warrant the accuracy, correctness, or completeness of information in its analysis and therefore will not be liable for any loss incurred.

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