Technically, Ether price still lies within a downtrend, and most technical indicators are favoring an extension of the current down move.
Ether Price Heading Lower?
Ether price was mostly flat this past week against the US Dollar, but there are a few bearish signals emerging on higher time frame charts which may push it lower in the short term. First, let us have a look at the daily chart of the ETH/USD pair, and try to understand what happened this past week.
The pair made an attempt to trade above the $12.60 resistance, but failed. The main reason of failure was a monster bearish trend line on the daily chart. It prevented gains earlier also, and this time acted as a perfect barrier for the ETH bulls.
The pair started moving down and tested the $11.50 support. One important thing to note about the recent rejection is that there is a bearish candle pattern formed around the rejection area. It can be considered as a strong rejection sign and may ignite further losses in ETH/USD.
The pair is currently finding bids near the 23.6% Fib retracement level of the last wave from the $7.88 low to $12.65 high. However, there is a high probability that sellers may break it to take the price further down.
If we drop on the hourly chart of the ETH/USD pair, then we can clearly see a short-term downtrend. There is a bearish trend line formed, which is acting as a resistance and preventing a recovery.
The pair is currently getting bids near the $11.50 support (highlighted in orange). The stated level holds a lot of value for the ETH bulls. If they are able to protect it, there lies a chance of a bounce back. Otherwise, a break below it could take ETH/USD towards the $11.00-$10.80 support.