Key Highlights
- Ethereum price after the recent assault against the US Dollar started to catch bids near $10.20 against the US Dollar.
- There is a contracting triangle pattern formed on the hourly chart (data feed via Kraken) of ETH/USD, which may provide us the next break.
- A break above it might take the price higher, and could ignite a larger recovery.
Ethereum price remained under a lot of pressure, but if the sentiment remains stable, there is a chance of a minor correction in the near term.
Ethereum Price Break
Ethereum price ETH looks like stable now against the US Dollar after a sharp decline due to the DAO attack recently. The price traded below the $11.00 support area and almost tested the $10.0 handle. The price already started a correction, and traded as high as $13.78 where it found sellers again.
It would be interesting to see how the price trades in the near term, as there is a contracting triangle pattern formed on the hourly chart (data feed via Kraken) of ETH/USD. The highlighted pattern may play a major role in the near term. A break above the triangle might call for a larger recovery in ETH/USD, and on the other hand, if the price breaks down, then there is a chance of a test of $10.00.
The price is also below the 23.6% Fib retracement level of the last drop from the $21.10 high to $10.13 low. Only a break above the stated fib level could push the price back higher and towards the 50% Fib retracement level of the same wave.
Hourly MACD – The MACD is slowly moving into the bullish zone, which is a positive sign for the bulls.
Hourly RSI – The RSI is just above the 50 level, suggesting that the price may attempt to move higher.
Major Support Level – $12.00
Major Resistance Level – $12.80
Charts courtesy of Kraken via Trading View