Ether Price Uptrend At Risk?
|Yesterday’s peak in Ether price at $53.01 against the US dollar was followed by a minor reversal.|
|The intraday bias is slightly negative for ETH/USD, as the pair faces continuous offers.|
|There was a strong downside move in ETH/BTC, putting pressure on Ether buyers.|
Technically, the 2-hour chart indicators are slowly heading lower, and moving away from the bullish territory.
ETH/USD Edging Lower
Does the recent lull in Ether price present an opportunity to buy? The sense is that the ETH/USD trend is still intact, but there is room for further correction. The main reason for an increase in the bearish pressure is more than 12% decline in ETH/BTC.
Ether price was seen struggling against the Bitcoin, resulting in downside pressure on ETH/USD. ETH/BTC was down from 0.051BTC to 0.045BTC.
Looking at the 30-min chart of ETH/USD, it looks like there is a declining structure in place with a lower low pattern. In yesterday’s analysis, I highlighted the importance of $52 resistance. It acted as a strong barrier and produced a downside move.
The price fell from $52 to $48.02 where it found support. A recovery wave was initiated, but was protected near a bearish trend line at $50. A lower low is now at $50.10, and can be considered as today’s pivot. It also represents the 50% Fibonacci retracement level of the last decline from the $52 high to $48 low.
The price is already moving lower after failing to clear $50, which means there is a risk of Ether price retesting $48. Clearly, the price is struggling in the short term, and it can be seen in the 2-hour chart as well.
The ETH/USD pair is attempting a close below two major bullish trend lines with support at $50. If there is a proper close, and we have back to back bearish candles, then there is a chance of further declines.
Overall, if Ether price fails to regain the $50 handle today, it might extend the current downside move.