Key Highlights
Ether price today made a sharp downside move from $10.60 to $10.20 against the US Dollar.
It was mainly due to pressure created by declining Bitcoin price after China’s central bank launched an investigation.
Most cryptocurrencies were under pressure, including ETH and ETC.

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

Today ETH/USD Forecast: Slow and Steady Rise
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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