Can ETH/USD Hold $10.50 Support?
|Ether price failed to hold the $10.70 support against the US Dollar, and moved down.|
|The ETH/USD pair is now below $10.70, and facing resistance on the upside near a bearish trend line on the 30-min chart.|
|The 2-hour chart suggests that $10.60-10.50 support area holds a lot of value in the short term.|
Technically, the 2-hour chart indicators turned south, and extended decline in the bearish territory.
Ether Price at Near-term Risk
There was a nice upside move in Ether price yesterday towards the $10.85 level against the US Dollar. However, the price later failed to hold gains, and moved down.
The 30-min chart of ETH/USD shows that the pair attempted twice to break the $10.80-10.85 resistance area, but failed. It was a perfect case of a double top pattern, resulting in a downside move.
The pair moved down, broke the neckline support at $10.70 to extend losses. The decline was from $10.83 to $10.51 to complete the double top pattern. The pair found bids near $10.50, and started a recovery.
At the moment, it is facing resistance near a bearish trend line at $10.65, and moving down. The 50% Fibonacci retracement level of the last leg from the $10.51 low to $10.78 high is almost cleared, signaling further losses.
However, we cannot discard the $10.60-10.50 support just yet. It may continue to act as a major hurdle on the downside for more declines. The 2-hour chart of ETH/USD also highlights its importance.
There was a clear rejection near $10.50 recently, and a bullish trend line is formed on the chart, which might act as a support near $10.60.
So, a downside break below $10.50 won’t be easy. If it continues to act as a support, there are chances of a bounce back in Ether price. In that scenario, a retest of $10.80 is possible.