Going forward, given the prospects of more weakness in Ether price, staying on the sidelines may be a preferred option.
Ether Price To Weaken Further?
There was a minor recovery in the ETH/USD pair during the past 24 hours, but the upside could not sustain due to the number of resistances on the upside. The price traded close to the $12.60 level where it found offers and started moving down.
Currently, there is a descending channel formed on the 24-hours chart of ETH/USD, which is pushing the price down. Yesterday, I emphasized that there is a chance of a downside move towards $12.00, and the ether sellers did attempt a test of the stated level.
I think as long as the descending channel is in place, the ETH/USD pair may continue to move down and test $12.00. We need to keep monitoring the trading volume, and if there is an increase, the chances of losses will rise.
The downtrend in ETH/USD is clearly visible on the 7-days chart. There is a long followed bearish trend line, and now another bearish trend line is formed, which is currently acting as an initial resistance.
On the downside, the $11.80 level can be considered as a support area (green line), and it may act as a major hurdle for the Ether bears. Overall, the trend is bearish for ETH/USD, and the bulls should be careful trading in the short term.