Technically, the hourly chart indicators are pointing extreme bearish sentiment.
Ether Price Declines Further
Yesterday, we saw how Ether price was rejected around the $10.35 level against the US Dollar, which initiated a downside wave. It looks like the ETH/USD pair extended the decline and registered heavy losses.
There was a successful close below a major support area of $10.00 and then $9.80. As a result, the pair fell sharply and traded towards the $9.50 level. When we look at the hourly chart of ETH/USD, there was a clear break below a major support area just below $10.00.
There was a breakout pattern on the same chart with resistance as a sloping bearish trend line. It can be considered as a monster break, and may ignite further declines in ETH/USD going forward.
If the pair corrects higher, the same broken support could now act as a resistance and stop the upside move. It also coincides with the 50% Fibonacci retracement level of the last decline from the $10.20 high to $9.66 low.
When we look at the 4-hours chart of ETH/USD, there is also a break visible. Although the current candle has not closed below the support yet, but looking at the momentum, it looks like it may close below it.
On the upside, there are also a couple of bearish trend lines, waiting to act as a hurdle if Ether price attempts to correct higher. Overall, there is a lot of bearish pressure on ETH, and any recovery from the current levels won’t be easy.