Ether Pressured as Risk Sentiment Fades
|Firm bearish tone for ETH/USD has been established in the short term with resistance at $46.00-48.00.|
|Ether price extended yesterday’s decline against the US Dollar and may be heading lower towards $40.00.|
|ETH/BTC was also pressured and pushed towards 0.035BTC.|
Technically, the 4-hour chart indicators are sliding in the bearish territory with a lot of negative signals.
Ether Price Downside Move to Extend?
It looks like sellers seek for a weekly close below $50 in Ether price against the US Dollar, and 0.050BTC against Bitcoin. It might create a bearish sentiment in the short term for both ETH/USD and ETH/BTC.
Yesterday, we saw how upsides were limited and the price was positioning for more losses. The ETH/USD pair failed to gain momentum for a recovery, and moved down further towards $40.00.
The corrective rally towards $47.50 faced resistance near a bearish trend line on the hourly chart. The same level represented the 50% Fibonacci retracement level of the last decline from the $51.49 high to $43.36 low.
The price failed to break $47.50, and moved down. The downside move was such that there was a break below $43.36 for an extension towards $41.00.
Looking at the hourly chart, it is clear that Ether price is struggling and faces a major resistance near $44.50-45.00. The stated resistance coincides with a bearish trend line and the 23.6% Fibonacci retracement level of the last decline from the $51.49 high to $41.12 low.
Should the price corrects higher, it could face hurdles near $44.50 and $45.00. When we look at the 4-hour chart of ETH/USD, there was a break below a critical support at $48, which was broken. The same level may now act as a resistance.
Moreover, there is an expanding triangle pattern formed with lower support at $40.00. In my view, if the current bearish sentiment remains intact, there is a chance of ETH/USD testing the $40 support.