Ether Price Weekly Analysis – More Stress For ETH/USD
|The Ether gave up some ground against most of its counterparts like the US Dollar this past week after a failure to gain momentum.|
|ETH/USD is trading around its weekly low, and the 30 days chart presents a bearish tone, as the price is below its 100 simple moving average.|
|On the downside, the $11.80 support area holds the key for Ether price in the near term.|
ETH/USD failed to find buyers, and I think the pair has concluded its correction with the possibility of more losses moving ahead.
Ether Price Downside Move
There was an increase in the selling pressure on Ether price, as it moved down against the US Dollar. The most important $11.80 support area was put to test on a couple of occasions. I think the mentioned support zone holds the key for the ETH/USD pair during the upcoming week, and might decide the fate of ETH in the short term.
The last 7 days chart of the ETH/USD pair clearly points the importance of $11.80. It is currently holding further losses in the pair, and can be considered as a major breakout area. It protected a break in ETH/USD many times, and might play a crucial role moving ahead.
On the upside, the price found sellers time and again around two critical levels. First, the $12.80 level, which was a support earlier and now acting as a resistance. Second, the most important hurdle for the ETH bulls is around $14.00-50, as it stopped the upside move in ETH/USD on more than three occasions recently.
No doubt, the price is trading near crucial junction, which can be visible on a higher time frame chart as well. There is a major contracting triangle pattern forming on the last 30 days chart of ETH/USD, which can produce the next move. The price is currently trading near the triangle support area, which must hold if the price has to recover in the short term.
A break below the triangle support trend line could easily push the ETH/USD pair towards the $10.00 level (the next major support area after $11.80).
On the upside, as I mentioned earlier, we need to keep a close eye on $12.00 initially for a recovery in ether price. I think considering the current technical indicators and price action, the ETH/USD pair is poised for more losses. However, if the $11.80 support area manages to hold again, then a bounce is very likely.