Ether price opened with an increase in bearish sentiment today against the US Dollar to trade below $11.80. It looks like the recent losses may extend to $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.
Important Resistance Levels
$11.60 and $11.80
Important Support Levels
$11.35 and $11.00
The RSI technical indicator is around the oversold readings, which may ignite a minor correction towards $11.80.
The MACD is strongly placed in the bearish slope.
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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