ETH/USD Pressuring Support, Remains At Risk
|Ether price extended its downside move against the US Dollar, and moved below the $10.60 support.|
|Yesterday’s contracting triangle pattern on the ETH/USD hourly chart was broken, and now the pair is following a descending channel.|
|The 4-hour chart is signaling an increase in the bearish pressure with a chance of close below $10.50.|
Technically, the hourly chart indicators maintain a sharp bearish slope, signaling further declines.
Ether Price to Settle below $10.50
It looks like ETH/USD’s failure to beat strong resistance near $11.00 resulted in a downtrend. There was a rise in the bearish pressure yesterday, which later resulted in more declines in Ether price.
The pair broke yesterday’s highlighted contracting triangle pattern on the hourly chart to initiate a downside move below $10.60. There was even a close below the stated support, resulting in sellers gaining momentum.
There is a descending channel pattern formed on the same chart with resistance near $10.60 and support at $10.50. At the moment, the price is pressuring the $10.50 support and looking for a close below it. If it succeeds, it may open the doors for further declines.
On the upside, the $10.60 level may now act as a resistance. There is also a bearish trend line with resistance near $10.70-10.72. Overall, the price remains at risk of additional losses in the short term.
The 4-hour chart of ETH/USD suggests that the price is heading lower. It has already moved below the 23.6% Fibonacci retracement level of the last wave up from the $9.14 low to $11.00 high, signaling the start of a downtrend.
If there is a 4-hour close below the $10.50 support, Ether price may face further declines. Below here is a warning to buyers. A bounce from $10.50 is also possible, but longs look risky considering the current market sentiment.