ETH/USD Under Pressure, Upsides Limited
|Ether price came under a bearish pressure against the US dollar, but was seen gaining against the Bitcoin.|
|The ETH/USD pair settled below the $10.00 handle, and broke an important support for more downsides.|
|The most crucial support is still intact on the downside at $8.50, and a test is very likely going forward.|
Technically, the 6-hour chart points a topping pattern with indicators heading south in the bearish zone.
Ether Price Downside Thrust
There was an increase in the downside momentum in Ether price against the US Dollar, as it moved below an important support area at $10.00.
On the other hand, the price was seen gaining traction and momentum against the Bitcoin. ETH/BTC succeeded in closing above the 0.010BTC resistance, which is a positive sign for overall market sentiment for the Ether.
However, upsides at this moment may be limited. The 2-hour chart of ETH/USD suggests that the pair is currently consolidating above the $9.30-9.40 support area. There is a chance of it breaking the highlighted support area for further declines.
The highlighted support area also represents the 61.8% Fibonacci retracement level of the last leg from the $7.93 low to $11.87 high. So, a break below it could take the price further lower.
Looking at the last few candles on the 2-hour chart, there are high chances of a downside break. Looking at a higher timeframe chart like 6-hour, there is a clear selling pressure visible.
The pair is attempting a downside break at the moment. If there is a break, the pair may head towards the most significant support zone at $8.50. It acted as a major barrier for an upside move earlier, and might act as a support if there is a decline.
On the upside, there is a bearish trend line on the 2-hour chart, which may act as a resistance around $10.00-10.20. A break and close above it is needed for a decrease in selling pressure.