Technically, the hourly chart indicators are bearish, and pointing further declines in Ether price.
ETH/USD Failed Recovery Attempt
Yesterday, we witnessed a bounce in Ether price versus the US Dollar after the announcement of 4th hard fork: Spurious Dragon block number by the Ethereum Foundation.
However, it looks like the upside move was false. The ETH/USD pair traded as high as $10.35 and then backed down. There were 2-3 attempts to break the stated level, but there was no break.
As a result, the price declined, and during the downside move broke the 50% Fibonacci retracement level of the last wave from the $9.86 low to $10.35 high. The pair even broke the $10.20 support, which was a clear signal that the price may retest the $10.00 support.
The price declined further and even broke the $10.00 support once. However, there was no proper close below it, as a bullish trend line formed on the hourly chart is currently defending the downside move.
There are clear rejection patterns visible on the hourly chart, and suggests that the price is back in the bearish zone. When we look at the 4-hours chart of ETH/USD, we will understand the real reason of the recent failure.
There is a crucial bearish trend line, which acted as a barrier and preventing the upside move. In short, the price is back testing a major support. A break and close below $9.85 might trigger more losses.
On the other hand, only a break above the trend line resistance on the 4-hours chart could initiate a real bullish wave.