Technically, the 2-hour chart indicators started turning bearish, but waiting for a catalyst.

Ether Price Slides Vs Dollar

The ETH/USD pair was seen consolidating in a tiny range around $10.60 earlier today until there was news about the People's Bank of Shanghai headquarters, the Shanghai Municipal Finance Office launching an investigation to carry out on-site inspection of Bitcoin.

It caused a slide in Bitcoin price, which pressured other cryptocurrencies like ETH and ETC as well. Ether price was already struggling to clear the $10.60 resistance against the US dollar, and this gave sellers reason to push the price down.

Ether Price Analysis Chart

There was a sharp downside move in ETH/USD, as the pair moved towards the $10.10-10.00 support zone. During the downside move, the pair broke a bullish trend line on the 30-min chart at $10.55.

Moreover, there was a break below the 50% Fibonacci retracement level of the last leg up from the $10.10 low to $10.68 high. The pair nosedived and almost tested the last swing low of $10.10, and currently attempting to hold the downside.

The 2-hour chart suggest that the price is trading near a major support. Now, we all know how important the $10.00 support is, but there is also a trend line on the H2 chart, acting as a support.

Ethereum ETH/USD Forecast Chart

It looks like there is a contracting triangle pattern forming, which may provide us the next break in the short term. The last candle on the chart is bearish, and suggesting a strong selling pressure.

The pair needs to hold the trend line support, else there can be a major downside break. On the other hand, the price may recover from the $10.10 support area if the trend line support prevents a break.

Important Resistance Levels
$10.40 and $10.60
Important Support Levels
$10.10 and $10.00
2-hour RSI
The RSI technical indicator is just above the 50 level, suggesting the price may either bounce or continue lower.
2-hour MACD
The MACD is about to negate the bullish slope, which is a bearish sign.
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Ether Technical Analysis

01-22-2017 ETH/USD Weekly Forecast: Time To Buy Ether?
01-12-2017 ETH/USD Forecast: Heading Towards $8.50?
01-11-2017 ETH/USD Pressured By Bitcoin’s Decline
01-10-2017 ETH/USD Relatively Muted With Support Near $10.00
   

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