- Ethereum price after settling below the 100 hourly simple moving average continued to struggle to trade higher.
- There is a contracting triangle pattern forming on the hourly chart (data feed via Kraken) of ETH/USD, which may provide us the next break.
- As long as the price is below the 100 SMA, the chances of a break down are more moving ahead.
Ethereum price is struggling to trade higher, and approaching a short-term breakout. Can sellers succeed or the bulls will overcome selling pressure?
Ethereum Price – Trade with a break?
Ethereum price after failing to break the $12.12 level against the US Dollar moved down, and showed a lot of bearish signs lately. The price closed below the 100 hourly simple moving average as well, which suggests that the bulls are struggling to take the price higher.
There is a contracting triangle pattern forming on the hourly chart (data feed via Kraken) of ETH/USD, which may be seen as a catalyst for the next move. The highlighted triangle pattern if on the verge of providing a break, and depending upon the break one may consider trading. The chances of ETH trading down are more, as the price is below the 100 SMA.
So, one may consider selling if the price breaks the triangle support area and closes below it. A stop can be a few points above the 100 hourly SMA. If the bulls manage to gain control and break the 100 SMA, then the last swing high of $12.12 can be tested in the near term.
Hourly MACD – The MACD is almost flat, which is a sign that the price is consolidating and setting up for the next move.
Hourly RSI – The RSI is hovering near the 50 levels, and if closes below the 50 level, then ETH/USD may move down.
Intraday Support Level – $11.40
Intraday Resistance Level – $11.80
Charts courtesy of Kraken via Trading View