Technically, the 4-hour chart indicators moved below their midlines, signaling caution.
Ether Price Breaks Key Support
Both ETH/USD and ETH/BTC pairs struggled to recover during the past two sessions and extended declines below $190.00 and 0.070BTC respectively.
Bearish pressures increased on ETH/BTC which added to selling pressure on ETH/USD. As a result, the pair broke a key support area at $190.00 on the hourly chart.
Initially, there was a break below a preliminary support of $200.00, which continued towards a clear close below the $190.00 pivot. The pair now seems to be heading towards the $175.00 level as pointed in yesterday’s analysis.
The current decline in ETH/USD is gaining momentum and could result in a move towards $175.00 or even lower. On the upside, the broken support at $190.00 may now act as a resistance. Above $190.00, the $200.00 handle would be the next barrier for buyers.
Looking at the 4-hour chart of ETH/USD, the pair is about to settle (H4 close) below an important support at $190.00. It may soon test the next immediate support of $175.00.
The $175.00 support is also the 61.8 percent Fibonacci retracement level of the last wave from the $133.79 low to $256.08 high.
Below $175.00, sellers could target the last swing low of $133.79 or at least $160.00. To the topside, there is a crucial bearish trend line with resistance near $210.00.
The overall short-term market sentiment is bearish below $190.00- 200.00. As we move to the next week, we might witness an increase in volatility. We need to keep a close watch on the $175.00 support and $200.00 resistance for the next break in ETH/USD.