ETH/USD Declines Sharply Amid Profit Taking
|The ETH/USD pair failed to hold the $90.00 support area, sparking a sharp downside wave towards $80.00.|
|The $80.00 support area is holding losses since it is a strong weekly pivot.|
|The ETH/BTC performed poorly and was down by more than 18% towards 0.045BTC.|
Technically, the 2-hour chart indicators turned sharply lower, suggesting a short-term bearish bias.
Ether Price Started a Correction?
On Tuesday morning, Ether got hit hard and depreciated against the US Dollar and Bitcoin. The main reason for a sharp decline in prices was Bitcoin’s rise. Almost all major cryptocurrencies like Ether, Dash, Ripple and Monero faced heavy selling pressure.
However, I consider this as only a short-term profit taking move, bearing in mind the recent upside run. The ETH/USD pair was down from $92.00 to well below $80.00 (as shown in the 2-hour chart), and ETH/BTC declined by more than 18% towards 0.045BTC.
In yesterday’s analysis, I mentioned that the $90.00 support holds a lot of importance for the current trend. The break below $90.00 was significant and ignited a sharp downside move.
The price even declined below $80.00 and traded as low as $78.74. However, the $80.00 support played its part well, as we all know it is a major weekly pivot. A close below it won’t be easy and is rather unlikely.
The price already began to recover from $80.00, though it seems like the profit taking phase is still upon us. On the upside, the same support at $90.00 may now act as a resistance. Moreover, there is a bearish trend line on the 30-min chart at $89.00.
An initial resistance is around the 50% Fibonacci retracement level of the last decline from the $93.00 high to $78.74 low is currently around $86.00.
Above $86.00, the trend line resistance is at $89.00, with the next to follow at $90.00. These resistances might play a crucial role in the near term.
I think the recent slide was much required, and we may see some ranging moves before the price makes the next move.