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.

Ether Price Analysis Chart Ethereum

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.

ETH Price Analysis Chart

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.

Important Resistance Levels
$11.80 and $12.00
Important Support Levels
$11.40 and $11.20
Hourly RSI
The RSI technical indicator is now below the 50 level, which is a concern and must recover if the price has to bounce back.
Hourly MACD
The MACD has moved to the bearish zone, signaling the start of a correction.
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Ether Technical Analysis

Today ETH/USD Weekly Forecast: Odds of Further Declines Increase
08-12-2016 Can Ether Price Make a Sustained Move Higher?
08-11-2016 ETH/USD Forecast - Is This ‘THE' Correction?
08-10-2016 Ether Buyers Emerge Winners, $13.00 On The Cards?
   

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