Ether price failed once again to gain momentum after a recovery against the US Dollar, and moved back below the $10.00 support area. What now?
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.
Important Resistance Levels
$10.20 and $10.50
Important Support Levels
$9.85 and $9.60
The RSI is around the 40 level, and attempting to recover from the oversold readings.
The MACD is all bearish, and there is no sign of a recovery in ETH/USD.
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial marketsETHNews is commited to its Editorial Policy
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