Ethereum Analysis: Ether Price Remains On A Back Foot
|Ether price nosedived against the US Dollar and posted a loss of more than 6% during the past 24 hours.|
|The ETH/USD pair broke a major support area highlighted in the weekly post to open the gates for more losses.|
|The price traded towards the $10.50 level and looks set for further weakness in the short term.|
The recent break in the ETH/USD pair is a strong bearish signal, and if the bears remain in control we may witness more declines.
Ether Price Nosedives
There ETH/USD pair has intensified its downside momentum today, briefly trading below the $11.00 area. Collaborating with the bearish sentiment, the ongoing Ethereum's DAO Forking Crisis increased the pressure on Ether price.
As of writing the pair has lost more than 6% during the past 24 hours at $1074 and a breach of $10.60 would open the door to all-important $10.00 psychological level. During the downside move, the pair settled below an important support area of $11.80 (as highlighted in the weekly analysis), which further ignited losses.
Moreover, the highlighted range in yesterday’s analysis was broken, signaling sellers’ strength. The idea of selling with a break worked and resulted in profitable move.
The ETH/USD pair today broke a channel pattern formed on the last 24 hours chart. Going forward, the highlighted channel support trend line might now act as a resistance if the price moves or corrects higher.
The last 7 days chart also suggests that the recent break was very critical and convincing, In short, we can say that there is a lot of bearish pressure at this moment on Ether price having potential to take it further down.
I think selling rallies remain a preferred option unless there is a major recovery in the ETH/USD pair.