ETH/USD Bears Are Back, Risk of Further Declines
|Ether price after a short-term recovery against the US Dollar found offers on the upside.|
|Yesterday’s highlighted resistance area of $11.20 acted as a perfect barrier for the ETH/USD pair.|
|Moreover, the bearish trend line on the last 7-days chart also stalled the upside momentum and ignited a downside move.|
The recent weakness in ETH/USD is a sign that it won’t be easy for the ETH buyers to contain losses in the short term.
Ether Price Downside Move
There was a short-term recovery in the ETH/USD pair yesterday, but the upside move stopped right at a crucial resistance area of $11.20. I highlighted in yesterday’s post the stated level and pointed out how it can act as a major hurdle for more gains.
ETH/USD as a result of a failure to trade higher, declined and traded close to yesterday’s low $9.83. Looking at the last 24-hours chart, there are a couple of important resistance zones formed on the upside.
First, a broken support trend line (white color) may act as a resistance at $10.2. Second, the most important resistance is around the yellow color bearish trend line at $10.5. No doubt, there is a huge amount of selling pressure on Ether price currently, and every correction may be seen as selling opportunities in the short term.
If we look at the last 7 days chart of ETH/USD, then the highlighted bearish trend line in yesterday’s analysis acted as a perfect barrier for the ETH bulls. It protected the upside and pushed the price down.
I think as long as the price is below the highlighted trend line, it may continue to weaken going forward. On the downside, the next important support is at $9.60.