The ETH/USD pair presents a negative tone, trading not far from the weekly low set at $10.38, and charts showing enough signals to confirm a downward continuation.
Ether price failure to recover against the US Dollar is raising concerns, and may dent the market sentiment further in the near term.
There is a descending channel pattern formed on the last 7-days chart of the ETH/USD pair, which is acting as a downside move catalyst.
The price is super bearish if we look at a lower timeframe chart like the 24-hours chart.
Ether price failed to close back above $10.80 resistance one more time with price action persistent to trade flat within $10.20 and $10.80 levels.
Ether Price Bearish Formation
Yesterday, I highlighted a contracting triangle pattern and mentioned that the $10.70-80 price levels could act as a major resistance. It did stall the upside move Intraday and ignited a downside move.
The ETH/USD pair is currently in a clear downtrend looking at the 24-hours chart. There are a couple of bearish trend lines formed, acting as a resistance and pushing the pair down. Moments ago, the price broke a short-term support area (highlighted with orange line), which may ignite further losses.
If the recent support break is true, the price may head towards the $10.20 range support area. The upside remains capped for the moment until the highlighted trend lines are breached.
The 7-days chart's price action shows a descending channel pattern being formed and could see a potential continuation to the downside. The price recently tested the channel resistance area and failed to break it, which might push ETH/USD towards the lower trend line positioned at $10.20.
The $10.20 level should offer an immediate support, with some buying interest. Only a break below it could take the pair towards $10.00.
Important Resistance Levels
$10.60 and $10.80
Important Support Levels
$10.30 and $10.20
The RSI indicator is well below the 50 level, which is a bearish sign.
The MACD is not moving much, which is a sign of a consolidation at the moment.
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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