Ether price stabilizing as the trading volumes decreased during the past few hours. Is this a sign that sellers are done for now selling ETH?
Ether Price To Recover?
In yesterday’s analysis, I mentioned that the ETH/USD pair may be heading towards the $10.00 support area. It recently traded towards the mentioned level, but there was no full test of $10.00, as the price traded as low as $10.19.
ETH/USD started recovering and currently showing a few positive signs on a lower time frame chart like the last 24-hours chart. There was a minor bearish trend line formed on the chart, which was broken during the recent upside move.
The price recovered by around $2, but it won’t be easy for the ETH bulls to take it higher in the short term. The downtrend is far from over, and the bearish sentiment is still intact. It’s just that the price may be able to correct a few more points moving ahead if the trading volumes remain stable.
On the upside, there is a monster resistance zone around $14.00. I mentioned yesterday as well that the stated level represents a major hurdle for a recovery. The yellow lines plotted on the last 7-days chart of ETH/USD points the importance of the resistance area. It also represents the 38.2% Fib retracement level of the recent drop from the $21 high to $10.20 low.
Even if we look at the last 2-weeks chart, then the same resistance area is visible and plotted with a red line. I think if the price continues to move up, then the $14.00 may act as a major barrier for the bulls, and can be considered as a sell zone with a stop of not more than 1-2 points.
On the downside, the most important support area is at $10.00. A break below it won’t be good at all for Ethereum price in the near term.