- Ethereum price after a decline this past week started to trade higher and currently heading towards a short-term break.
- There is a contracting triangle pattern formed on the hourly chart (data feed via Kraken) of ETH/USD, which may act as a catalyst for the next move.
- On the upside, there is a major resistance formed near the $8.20 level.
Ethereum price recently corrected higher to trade near $8.50 where it found sellers. At present ETH/USD is consolidating and may be approaching a break.
Ethereum Price – How to trade a break?
Ethereum price ETH recently managed to correct higher and traded close to the $8.50 level where it found sellers for a down move. The price moved down and currently forming a consolidation pattern, which may ignite the next move in the near term. There is a contracting triangle pattern formed on the hourly chart (data feed via Kraken) of ETH/USD, which may be broken soon for the next wave.
On the upside, the triangle resistance trend line is positioned with the 100 hourly simple moving average. So, we can say that there is a major resistance area formed near $8.20. Moreover, the 50% Fib retracement level of the last drop from the $8.55 high to $7.81 low is also around the stated resistance area.
So, I think if you are looking to buy ETH, then you can opt to wait for a break above the highlighted resistance area. Only a successful break above the triangle resistance area could ignite more gains in the near term and might take the price higher towards the $8.60 level.
Hourly MACD – The MACD may change the slope to the bullish zone, which may help the bulls.
Hourly RSI – The RSI is below the 50 level, which means it won’t be easy for buyers to take the price higher.
Intraday Support Level – $8.10
Intraday Resistance Level – $8.20
Charts courtesy of Kraken via Trading View