Technically, the indicators on the hourly chart are well below the neutral level, suggesting a bearish bias.

Ether Price Heading Lower?

Yesterday, we saw how Ether price declined towards $10.00 versus the US Dollar before starting a recovery. During the correction phase, the ETH/USD pair traded towards the $10.80 level. The stated level acted as a perfect resistance, as highlighted in the yesterday’s analysis and prevented any further gains.

Ether Price Analysis Chart

It was a perfect example of how a support area can later act as a solid resistance. Another important point about the recent rejection was the fact that the pair failed near the 50% Fibonacci retracement level of the last decline from the $11.30 high to $10.24 low.

So, the recent rejection near $10.75-80 can be considered as completion of the correction. The price has already resumed its downtrend, and the chances of it testing the recent low $10.24 once again are very high.

Ethereum ETH/USD forecast

Now, let us try to understand why the recent break below $10.80 was crucial. Looking at the 4-hours chart of ETH/USD, there was a contracting triangle pattern formed. During yesterday’s downside move, the pattern was broken to ignite a bearish wave.

We can see it as the first sign of a bear trend. And, in such cases the price always corrects once to retest the broken support, which happened recently when the price retested $10.80. All these are signs that the ETH/USD pair may continue to trade lower. The next major support where the pair may find buyers is at $10.00.

Important Resistance Levels
$10.70 and $10.80
Important Support Levels
$10.25 and $10.00
Hourly RSI
The RSI technical indicator just tested the neutral level, failed and now moving south.
Hourly MACD
The MACD is positioned in the bearish slope, and may extend it.
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The content on ETHNews.com is provided for informational purposes only and it is not intended to be, and does not, constitute financial advice or any other advice. You should not rely on any ETHNews.com content to make an investment decision. ETHNews.com is not responsible for any investment decision made by you. You are responsible for your own investment research and investment decisions.

Ether Technical Analysis

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