- Ethereum price failed miserably around the $15.00 resistance against the US Dollar, and traded lower.
- The ETH/USD pair had a losing streak this past week, as it failed to gain momentum.
- There is likely a double top pattern forming on the daily chart of the ETH/USD pair, which may produce a decline in the short term.
Ethereum price is trading under a major resistance area against the US Dollar, but at the same time remained above a crucial support.
Ethereum Price Trend
Ethereum price ETH failed to trade higher this past week against the US Dollar. There was a major hurdle on the upside around $15.00, which acted as a barrier and prevented the upside move. Moreover, the most important point is that the price failed to break the 61.8% Fib retracement level of the last drop from the $21.30 high to $6.94 low.
So, we can say that the price completed a correction, and preparing for a downside move. Another critical bearish signal is the fact that the price is forming a double top pattern forming on the daily chart. So, if the pattern is correct, then there is a high probability of a downside extension in the short term.
On the positive side, there is a bullish trend line formed on the same chart, which acted as a hurdle for sellers on many occasions and it may continue to act as a buy area. So, there are mixed signals, but there is one more fact that cannot be discarded. The pair is above the 100-day simple moving average. So, in my view, as long as the price is above the trend line support, there is a chance of a recovery in the near term.
Daily MACD – The MACD is currently in the bullish slope, but it should not change slope moving ahead.
Daily RSI – The RSI is just above the 50 level, suggesting caution in the near term.
Major Support Level – $12.20
Major Resistance Level – $13.20
Charts courtesy – SimpleFX