ETH/USD Forecast: Heading Towards $8.50?
|Ether price was decimated against the US Dollar, as yesterday’s decline extended below the $10.00 support.|
|The ETH/USD pair also cleared a major bullish trend line on the 4-hour chart at $10.20 to initiate a decline.|
|The pair is under heavy selling pressure, and may head towards the all-important $8.50 support area.|
Technically, the 4-hour chart indicators turned negative, and extending losses in the bearish territory.
Ether Price to Continue Lower?
The market sentiment turned bearish yesterday for Ether price, as it failed to hold the $10.00 support area against the US Dollar. There was a sharp decline, suggesting a short-term bearish trend.
The ETH/USD pair started a downside move yesterday, which extended later. There was an attempt to stay above the $10.00 support, but sellers had the last laugh.
The price broke the stated support area and moved below the 50% Fibonacci retracement level of the last leg up from the $7.93 low to $11.87 high, opening the doors for more declines.
There was a clear downside break in ETH/USD, looking at its 2-hour chart. The pair was also seen supported near $9.60, but that too gave up later for a move towards $9.10-9.00.
The 4-hour chart of ETH/USD highlights a short-term bearish trend. There was a major bullish trend line on the chart, which was broken at $10.20 during the recent downside.
It looks like the pair is now heading towards a monster support area at $8.50. The stated level was a crucial resistance earlier, and may now act as a support.
It holds a lot of importance, as the 76.4% Fibonacci retracement level of the last leg up from the $7.93 low to $11.87 high is also around $8.50-8.60.
In short, if the current downside move extends further, then the $8.50 support area may play a major role in the near term. On the upside, the broken support levels at $9.60 and $10.00 might act as a resistance.