ETH/USD Relatively Muted With Support Near $10.00
|Ether price moved down a few points during the past two sessions against the US Dollar to challenge the $10.20 support.|
|The ETH/USD pair cleared a short-term bullish trend line formed on the hourly chart at $10.50.|
|The pair remains above a major support area of $10.00, which holds the key going forward.|
Technically, the 4-hour chart indicators remain in the bullish territory with no sign of a major decline.
Ether Price Forecast
The ETH/USD pair declined in quiet trading, with the market being relatively muted. It looks like there is a short-term bearish pressure on Ether price, pushing it towards a couple of important support levels.
There was a slight downside move in ETH/USD recently, as there was a break below a short-term bullish trend line formed on the hourly chart at $10.50. The pair moved down, and tested the $10.20 support area.
The stated support area also represents the 50% Fibonacci retracement level of the last leg up from the $9.52 low to $10.85 high. So, there were strong bids, avoiding a close below $10.20.
However, the recent break looks real, and may ignite a downside move towards $10.00 in ETH/USD, which is a crucial support area. Any major downsides are very unlikely since there are no signs of a trend change on higher timeframe charts.
The 4-hour chart of ETH/USD clearly shows how the pair is well-supported on the downside. There is a bullish trend line on the same chart, acting as a barrier for a bearish break. As long as the pair is above the trend line, it may bounce back towards $10.60.
The only concern I have is the last three candles on the H4 chart. They suggest that the price is struggling to gain momentum. In such cases, there are possibilities of a downside break. So, we need to be very careful and keep a watch on the $10.00 support.