Technically, the hourly chart indicators turned south, and now well in the bearish territory.
Why Ether Price Failed to Gain Momentum?
Yesterday, we witnessed a break above the $92.00 resistance in ETH/USD, and were waiting for it to gain momentum above the $93.00 barrier.
However, the pair failed to gather pace above $93.00, and declined sharply. The main reason was a key bearish trend line on the 4-hour chart at $93.50, which acted as a major hurdle for buyers and prevented further gains.
The price retreated after testing the trend line resistance and broke the $91.00 and $90.00 support to turn bearish in the short term.
Looking at the chart, there is a possibility of Ether price declining back towards the $82.00 support zone, which is the most important pivot and must prevent additional losses in ETH/USD.
On the upside, the pair needs to break the highlighted trend line resistance (currently at $92.00) in order to advance for an upside move towards $98.00-100.00.
Dropping down to the hourly chart, ETH/USD broke two significant bullish trend lines at $92.00 and $91.00, igniting a downside move. A low was formed at $87.29, and currently the pair is attempting a recovery.
It may soon find resistance near the $89.00 area, which also coincides with the 23.6% Fibonacci retracement level of the last drop from the $93.62 high to $87.29 low.
However, I won’t consider it as a significant hurdle for a recovery in Ether price. It could easily acquire bids and move back above $90.00 later today.
Overall, the recent decline should not be a major concern for Ether buyers as long as the price stays above $82.00-80.00, and the current wave can be considered as a part of corrective structure.