ETH/USD Struggles Into Bottom of Support Zone
|Ether price looks like following a lower lows pattern against the US Dollar, as it traded to a new intraday low at $10.43.|
|There is a bearish trend line on the ETH/USD hourly chart with crucial resistance at $10.60.|
|The 6-hour chart suggests that the pair is reaching a connecting bullish trend line at $10.40.|
Technically, the hourly chart indicators are extremely bearish with no sign of a recovery.
Ether Price Could Slide Below $10.40?
Yesterday, Ether price started to recover from the $10.46 low against the US Dollar, but faced resistance near $10.60-10.65. The ETH/USD pair struggled to clear the stated resistance and moved down.
It looks like the pair is forming a lower lows pattern in which it is forming a new low in each wave and not able to break the last wave high when corrects higher.
The pair moved down, and formed a new low below $10.46 at $10.43. It is once again moving higher from the stated low. If the mentioned pattern is correct, then it is likely to face sellers around $10.60, and it won’t be able to break the recent high of $10.66.
There is a bearish trend line on the hourly chart of ETH/USD, which may stop the current wave near $10.58-10.60. And, if it moves down once again, there is a high chance of breaking $10.43 to form yet another new low.
Only if there is a break above the last swing high at $10.66 and the highlighted bearish trend line, the pair might overcome selling pressure in the short term.
When we move to the 6-hour chart of ETH/USD, there is a clear resistance trend line, which is currently acting as a catalyst for the downside move. On the other hand, there is a connecting bullish trend line with support at $10.40.
So, if the pair continues to dip lower, the trend line support at $10.40 might protect further losses. The chart also highlights how important $10.40-10.60 area is. It acted as a pivot zone on many occasions.