September 24, 2016 7:05 AM
ETH/USD looks like struggling to retain the buying sentiment, which exposes Ether to a short term bearish potential.
Ether price after completing a correction versus the US Dollar started a recovery phase.
The ETH/USD buyers are struggling to clear a major resistance at $13.50 during the current wave.
A continuous failure to break the stated level may call for a downside move in the short term.
Technically, the hourly chart is signaling a toppish scenario at $13.50.
ETH/USD Resistance Level
Ether price managed to pop a few points yesterday against the US Dollar and Bitcoin. There was a bounce in ETH/USD towards $13.50, and ETH/BTC tested 0.0222BTC. Both pairs found sellers on the upside and started struggling.
The ETH/USD pair is facing a lot of offers near $13.50, as it can be clearly seen from the hourly chart. The pair is struggling to surpass the stated level despite of more than 4 attempts. This means it is a crucial barrier for an upside move.
It is important to note that the $13.50 resistance also represents the 50% Fibonacci retracement level of the last drop from the $14.31 high to $12.70 low. So, it is a major hurdle for the Ether bulls, as I pointed out yesterday. Although, I was hoping of a break above $13.50, but it looks like there is a loss in momentum, stopping buyers to take the price higher.
The last 3-4 hourly candles are bearish and calling for a downside reaction. The pair may head towards the $13.00 support if the current bearish momentum stays intact. For the Ether bulls to gain traction, they need to surpass the $13.50 hurdle.
The mentioned level significance is also visible on the 2-hours chart. However, there is also a bullish trend line formed on the same chart. So, if the price continues to move down, it may find support near the highlighted trend line.
Important Resistance Levels
$13.50 and $13.80
Important Support Levels
$13.20 and $13.00
The RSI technical indicator is now below the 50 level, pointing further downsides.
The MACD is back in the bearish zone, as the bulls lost grip.
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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