Ether price seems to have stabilized below $14.00 region, and whilst there is still room for an upward correction, a near term sustainable bullish bias appears now out of the picture.
Ethereum price finally moved down against the US dollar after consolidating for a few sessions.
Yesterday’s view of the ETH/USD pair trading towards the $13.00-$12.80 levels was correct, as the price not only tested the stated level, but also traded below it.
ETH/USD traded as low as $11.68, and currently forming a short-term breakout structure.
ETH/USD 24H chart shows that the price is currently below a couple of important resistance levels, which can stall any correction from the current levels.
Ethereum Price Break
I kept saying throughout this week that there is a chance of a downside move towards the $12.80-$13.00 levels in ETH/USD. The price did move down as there was a perfect failure around the $14.00 and $14.20 resistance levels.
ETH/USD traded as low as $11.68, and currently forming a short-term flag pattern (yellow color) on the last 24-hours chart. On the upside, there are many a couple of important resistance levels. The $12.40 level is an initial hurdle on the upside.
However, the most critical resistance is around the $13.00-$12.80 levels. It acted as a major pivot earlier, and since the price moved below it, I think it may now act as an offer zone.
The same resistance area can be visible on the 7-days chart of ETH/USD with a yellow line. I think the price may attempt to correct higher, but could face sellers near $13.00-$12.80.
Moreover, yesterday’s bearish trend line (red line) is still in play and will remain the focus of attention in the near term. On the downside, a break below $11.68 may take the price towards $11.20.
Important Resistance Levels
$12.40 and $12.80
Important Support Levels
$11.65 and $11.20
The RSI is below the 50 level, suggesting a bearish bias.
The MACD has just moved back into the bullish zone, pointing towards a possible minor correction.
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis. He strives to provide entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession and loves blogging. ETHNews is commited to its Editorial Policy
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