ETH/USD Could Extend Weakness Below $40
|Ether price struggle to clear the $45 resistance against the US Dollar created a short-term bearish structure.|
|There are two bearish trend lines near $44 and $45 on the 2-hour chart of ETH/USD, acting as a major resistance.|
|The 30-min chart suggests that the pair broke a major support at $42, and might move down further.|
Technically, the 2-hour chart are slowly moving down and losing their way in the bullish territory.
Ether Price Preparing for Downside Move?
In yesterday’s analysis, we discussed the importance of $45-46 resistance area. It represents a major technical level for Ether price, and it looks like ETH/USD struggled one more time to clear the stated level.
Due to the failure to break $45, the pair moved down and broke a major support area near $42. There was a breakout pattern formed on the 30-min chart with support at $42 and resistance near $42.8.
The pair moved down, and broke the triangle support area, igniting a bearish wave. The most important move was below the 23.6% Fibonacci retracement level of the last wave from the $31.26 low to $45.73 high. It means the price may extend declines.
The next stop could be around $40, which is just above the 38.2% Fibonacci retracement level of the last wave from the $31.26 low to $45.73 high. When we look at the 2-hour chart of ETH/USD, the pair has a clear resistance near $42.5.
The mentioned resistance is formed near two bearish trend lines. Ether price is currently attempting to settle below the $42 support area, and if there is a proper close below the highlighted support (green line), there can be a move towards $40.
If Ether sellers step in, there is even a possibility of ETH/USD extending declines below $40.0. On the upside, an initial resistance is near $42.5, and the most critical hurdle is at $45 (last swing high).