Technically, ETH/USD is currently recovering, but most charts highlight $10.00 as a monster resistance area.
ETH/USD - $10.00 as Resistance
The virtual currency exchange, Bitfinex reported yesterday that there was a security breach and around 119,756 btc was stolen. Almost all cryptocurrencies, including Bitcoin and Ether came under selling pressure and prices moved down.
ETH/USD jaw dropped and traded lower by more than 20% to establish a new weekly low of $7.88. The $8.00 support area acted as a major barrier for sellers and produced a bounce. The pair has started a correction wave, but it may not last long. There is a bearish trend line formed on the hourly chart having potential to defend the upside move.
Moreover, during the downside move, the pair settled below a couple of important support levels. The most critical support was $10.00. Now, if the pair retest the mentioned level, then sellers may appear to defend it. It is one of the key reasons I think Ether price may continue to sink.
Looking at the 4-hours chart of ETH/USD, there is another bearish trend line waiting to act as a hurdle for the Ether buyers. The last closed candle is pretty bullish, but it’s hard to discard all other indicators pointing south.
As I mentioned, there may be an attempt to retake the $10.00 level. However, the chances of a failure are high, which may ignite a downside move yet again.