ETH/USD Tumbles; Scope For Test Of $11.00
|Ether price traded sharply lower against the US Dollar and broke a very important support area of $11.80.|
|Yesterday’s highlighted contracting triangle pattern on the 4-hours chart of the ETH/USD pair was broken to open the gates for more declines.|
|The broken support area of $11.80-$12.00 may now act as a resistance zone.|
Technically, near term rallies or corrections in ETH/USD could find offers since almost all indicators are pointing south.
Ether Price Slide
In the weekly analysis, I highlighted that Ether price is approaching towards a crucial break. However, I was not expecting a downside break. The price broke down today, and closed below a significant support area of $11.80.
In my view, the recent break was effective, and may lead to more losses in the near term. The reason why I think that the recent move may generate more losses is because there was a close below a major bullish trend line on the 4-hours chart of the ETH/USD pair.
Moreover, the last couple of H4 candles are bearish, and one of them is like a shooting star. If the mentioned pattern is correct, then there is a high probability of ETH/USD extending current losses. The next support on the downside is around $11.00, which may provide bids.
Looking at the hourly chart of the ETH/USD pair, there is a bearish trend line formed, acting as a downside move catalyst. Moreover, the $11.80 level is also highlighted with orange line to point out its importance. Together, both are forming a monster resistance at $11.60-80.
As long as the price is below the highlighted resistance area, sellers may remain in control.