Technically, the $11.20-00 levels hold the key for more downsides. If it holds, ETH/USD may trade back higher.
Ether Price Hurdles
In my last analysis I mentioned that Ether price closed above a major resistance area of $11.20 against the US dollar, which may result in more gains in the near term. The ETH/USD pair did trade higher, but the upside was limited as there were strong offers presented near $11.40.
The unsuccessful close above the $11.40 resistance sets a short-term bearish bias for the ETH/USD next move. In my view, the pair might head south to the $11.00-20 support. However, currently the $11.20 level is acting as a major barrier for sellers as it was a resistance earlier and now support.
There is a descending channel formed on the 30-min chart of ETH/USD, which is acting as a downside move catalyst. However, if the channel is considered as a flag pattern, there is a chance of an upside move once the pattern is complete.
When we look at the 2-hours chart of the ETH/USD pair, there are a couple of important points to note. First, the recent failure was around a major resistance area as highlighted by a resistance line (blue). Second, there is currently a bearish trend line formed (yellow), acting as a resistance. Lastly, there is a support trend line on the downside.
So, we can say that the price is stuck in a major breakout zone. Once we have a break, we can witness swing moves. In my view, the possibility of a break higher is a lot more.