ETH/USD Forecast: Double Top Ignites Downside
|Ether price struggled to clear the $10.60 resistance against the US Dollar, resulting in a downside reaction.|
|The ETH/USD pair formed a perfect double top pattern near $10.60, which ignited a bearish wave.|
|The pair broke a couple of important support levels on the hourly chart at $11.50 and $11.40.|
Technically, the hourly chart indicators turned sharply into the bearish territory and look to extend downsides.
Ether Price Reversal in Play?
This week, I was hoping for Ether price to test the last swing high of $11.87 against the US Dollar. However, it looks like an intermediate resistance at $11.60 played a crucial role.
There were two failures noted around $11.60, which resulted in a double top pattern formation on the hourly chart of ETH/USD. The pair moved down sharply, and broke the neckline support at $11.50.
The pair extended the losses, and cleared a couple of important supports on the way down. First, a bullish trend line at $11.52 was cleared. Second, the pair also broke another bullish trend line at $11.40.
Last, the price also showed no respect to the $11.30 support, and traded as low as $11.20. At the moment, it looks like the double top pattern is now complete, and the price might start consolidating losses.
An initial resistance on the upside resides at the 23.6% Fibonacci retracement level of the last decline from the $11.61 high to $11.20 low. Moreover, the broken trend line support at $11.40 might now act as a resistance.
When we look at the 2-hour chart of ETH/USD, the pair is currently attempting a close below a crucial bullish trend line support at $11.25.
If there is a close on the 2-hour chart below the highlighted trend line support, there are chances of additional declines in Ether price. If a break is avoided, the price could recover back towards $11.40.