ETHUSD produced a huge bearish daily candle on the daily chart the day before yesterday. The candle closed within previous support where daily candles’ wicks had a bounce. Yesterday’s daily candle came out as a bearish candle, but the body was too tiny. This means the daily traders were not confident to drive the price towards the South. None of the H4 candles made a breakout at the daily candle’s lowest low. Thus, the price action has been choppy again.
Let us have a look at the daily-ETHUSD chart.
The Daily Chart
The level of 174.20 is the level of daily support. The day before yesterday’s daily candle closed within the support level. However, candle’s wick did not get broken. This might have held the sellers to hold back.
Consequently, the price got into a range again. Today’s intraday price action has been choppy as well. However, two consecutive daily bearish candles have set a bearish tone. Thus, an H4 breakout at yesterday’s daily candle’s lowest low may drive the price towards the South further.
Let us have a look at the H4-ETHUSD chart.
The H4 Chart
The price had a bounce at the level of 164.20. The level of 174.20 has been working as a level of resistance. If the level of 164.20 gets broken by an H4 candle, the H4 sellers may start going short on the pair. This may eventually produce a strong bearish daily candle on the daily chart as well.
The Bottom Line
The H4 chart looks bearish, but the price may have more consolidation. Thus, the sellers may have to wait to get a downside breakout. Needless to say that consolidation often drives the price to go towards another direction and changes the trend. Let us wait and see what the price does here. This means it has become a game of patience again.