Ether Price Continues to Probe Bearish Trend Line
|Ether price tested yesterday’s highlighted bearish trend line on the hourly chart of ETH/USD, and failed to break it.|
|The pair moved lower, but remained above the $11.00-$10.80 support.|
|A breakout is near, as the trend line is moving down and range is shrinking on the hourly time frame.|
Technically, the indicators on the hourly chart looks exhausted and pointing towards a break going forward.
ETH/USD Heading Towards a Break
Yesterday, I highlighted a bearish trend line on the hourly chart of ETH/USD, and pointed out its importance. It continued to act as a resistance for more upsides, and stopped ETH gains on a couple of occasions.
There were a few spikes, but the Ether buyers failed to overcome selling pressure near the trend line resistance. The last hourly candle clearly shows a rejection, which is a warning sign for bulls. If the trend line continues to act as a barrier, then the chances of a breakdown are very high.
On the downside, I pointed out a crucial support at $11.00-$10.80, which is still intact. However, the range between the trend line and stated support is shrinking, which may finally clear the way for the next move in ETH/USD.
The pair is slowly and steadily grinding lower, and it is visible on the 12-hours chart as well. The last 4-5 candles (H12) are all bearish with a small body. There is also a bearish trend line on the same chart, acting as a resistance on the upside.
In my view, there may be a downside thrust to fill all buy orders before the price can recover. The price can even spike below the $10.80 support, but a daily close in that case would matter a lot. It should remain above $10.80 if it has to recover going forward.