ETH/USD Hesitates With Rise In Bearish Pressure
|Ether price faced a minor bearish pressure against the US Dollar, and was seen trading lower towards $10.60-10.50.|
|There is a contracting triangle pattern formed on the ETH/USD hourly chart, which could spark a break soon.|
|The 4-hour chart suggests an increase in the bearish pressure with crucial support near $10.60-10.50.|
Technically, the 20 simple moving average (hourly) has accelerated its downside move, signaling an increase in the bearish pressure.
Ether Price Approaching a Break
The ETH/USD pair extended its downside towards $10.50 recently, but pulled back from the level, easing towards the 10.70 region, overall maintaining the negative tone.
The pair met selling interest around $10.80, and moved down. The hourly chart suggests that there is a contracting triangle pattern forming with resistance at $10.80 and support near $10.60.
It looks like the pair is approaching the $10.60-10.50 support area, which holds a lot of importance for the current trend. We can clearly see 3-4 rejections near the stated support area, and it might once again protect the ongoing downside move.
However, the chart also points an increase in the bearish pressure on ETH/USD. It means, the highlighted support area remains at risk. Below $10.50, the pair can extend losses, with the next supports at $10.20 and $10.00.
The 4-hour chart also indicates a tough time for the Ether buyers. There was a bullish trend line break recently, pushing the price in the bearish zone.
There is also a clear resistance trend line on the same chart with hurdles near $10.75 and $10.80. On the other hand, we cannot discard the significance of the $10.60-10.50 support. It also represents the 23.6% Fibonacci retracement level of the last wave up from the $9.14 low to $11.00 high.
So, it may continue to halt downsides, but if the bearish pressure increases further, it may finally give up. Overall, the near-term action remains bearish, and consolidation is likely as long as the price is above $10.50.