September 10, 2016 12:54 PM
Ether price recovered after a dip towards $11.30 versus the US Dollar to trade above $11.50. However, can ETH/USD retain gains moving ahead?
Ether price rebounded well against the US Dollar recently, but failed to break the $11.70 resistance.
The ETH/USD is once again moving lower, and just broke a short-term support area.
It looks like the pair may correct lower and test the range support zone of $11.40.
Technically, the 30-min chart points a short-term top and calling for a downside move.
Ether Price Downside Move
Ether price started a rebound yesterday after a decline against the US Dollar. It managed to rise towards the $11.70 level where it found offers and started moving down once again. An intraday high of $11.73 was formed before the ETH/USD pair started trading lower.
Yesterday, I highlighted a minor bullish trend line on the 30-min chart of ETH/USD. However, the Ether bulls failed to hold the trend line support, as the pair just moved below it. There was even a move below the 23.6% Fib retracement level of the last wave from the $11.27 low to $11.73 high. So, there is a high possibility of ETH/USD extending the current downside move.
If the recent break is true, there is a chance of a short-term top at $11.73. In that situation, the price may head lower and even test the $11.40 level. The mentioned level represents a major support, as it has been acting as a range support for a few weeks.
When we look at the 4-hours chart of ETH/USD, the pair is still in a broad range. I have been tracking a broad range with support at $11.40-20 and resistance at $11.60-80. The pair seems like moving back towards the range support area.
There was a minor drop in the trading volumes during the past few hours, which help sellers in action to push the price towards $11.40. Overall, the price may remain in a range for quite some time before making a decision.
Intraday Resistance Levels
$11.70 and $11.80
Intraday Support Levels
$11.50 and $11.40
The RSI technical indicator is just below the 50 level, which is a short-term bearish call.
The MACD is mostly flat, suggesting no major move.
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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