Technically, the hourly chart shows that the price has extended its decline after failing to surpass a bearish trend line.
Ether Price under Bearish Pressure
The price recently traded close to a crucial resistance of $12.60. I was hoping for a break and a test of $13.00. Unfortunately, yesterday’s highlighted resistance band zone at $12.50-60 on the 4-hours chart of the ETH/USD pair stopped gains and ignited a downside move.
The GBP/USD pair declined to a fresh daily low, printing $11.65 and still under selling pressure. There is a bearish trend line formed on the hourly chart, acting as a resistance and pushing the pair down.
Recently, the pair broke a short-term support area of $11.80 (highlighted with green line), which may ignite further declines. There was a close below the 38.2% Fib retracement level of the last wave from the $10.77 low to $12.82 high, signaling the start of a correction.
There is a high probability that the pair may extend the current correction and test the 61.8% Fib retracement level of the last wave from the $10.77 low to $12.82 high. However, I feel that the $11.20-00 area, which was a resistance earlier may now provide support and prevent additional downsides.
As long as the price is above the stated support, it can be considered in a correction phase. If the ETH bears manage to break it, then there are chances of a trend change.