ETH/USD Pressured By Bitcoin’s Decline
|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.
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.
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.