Ether Price Downside Thrust Underway Before Correction?
|Ethereum price traded lower once again against the US Dollar and failed to remain above the $12.00 support area.|
|$11.80 and $12.00 levels are now crucial resistance levels for ETH/USD.|
|On the downside, the ETH bulls were seen active near $10.50-60 levels.|
Ether price is finding it very hard to recover against the US Dollar, and technical indicators keep heading lower, despite being in oversold territory.
Ether Price Forecast
ETH continued its downward trend, and even a weaker US dollar failed to lift the market sentiment for Ethers. ETH/USD lost its appeal, as renewed risk took the pair away from the recent high of $12.50 and pushed it towards $10.00.
Near-term studies show a very negative sight with the daily technicals remains firmly bearish and sees risk of further downsides if sellers remain in control. There was a break below a major support area of $11.80 (as seen in the last 24-hours with a red line), which may now act as a resistance if the price attempts to move higher.
If we look at the last 7-days chart, there is a contracting triangle pattern formed that may act as a catalyst for the next move in ETH/USD. Only a sustained break above the triangle support would sideline persisting downside risk and open way for a short-term recovery.
The triangle is perfectly set up for a big three wave structure, which means there may be a break sooner or later.
In short, we need to keep a close watch on a possible break, and then plan to trade accordingly as a break would trigger a shift in market's sentiment.