Key Risks Warn Against Chasing ETH/USD Higher
|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.