ETH/USD Forecast: Ether to Extend Its Declines
|The ETH/USD pair is under pressure as it recently broke a major support area at $250.00.|
|There was a clear break below a crucial contracting triangle support at $250.00, which is a short-term bearish sign.|
|The ETH/BTC pair also failed to hold the 0.100BTC support and declined towards 0.095BTC.|
Technically, the 2-hour chart indicators turned negative and gaining momentum in the bearish territory.
Ether Price Could Retest $210?
Yesterday’s stronger job reports from the US ignited sharp gains in the US Dollar against most cryptocurrencies. Furthermore, uncertainty regarding the Segwit2x Hard Fork has added to the negative sentiment for both BTC and ETH.
Ether price came under renewed selling pressure and broke key supports like $250.00 against the US Dollar and 0.10BTC versus the Bitcoin.
Looking at the 2-hour chart of ETH/USD, there was a clear break below a crucial contracting triangle support at $250.00. The breakout has been sustained and the broken support around $250.00-255.00 could turn into resistance, leading to a continuation of the current decline.
The pair could extend its decline possibly towards the next area of support around $220.00-210.00 before deciding on its next move.
On the upside, an initial resistance waits at $250.00 (support turned resistance) and the 50 percent Fibonacci retracement level of the last decline from the $272.50 high to $230.32 low.
Above $250.00, there is a bearish trendline at $261.00 on the 2-hour chart waiting to act as a barrier for buyers. Moving on to the 6-hour chart of ETH/USD, there are two bearish trendlines on the upside at $255.00 and $275.00.
As long as these trendlines are in place, the pair might continue its bearish slide and at least retest $230.00 in the near term.
The most important support lies at $209.72 (June 208, 2017 low). The 20 SMA has extended its decline and pointing an increase in the bearish sentiment for Ether.
Overall, the risk remains towards the downside, and below $230.00 the downward corrective movement could extend to $220.00 and $210.00.