ETH/USD Forecast: Scale Leans Towards The Downside
|Ether price was under heavy bearish pressure versus the US Dollar during the past two sessions.|
|The Ether buyers even failed to hold a monster support area at $13.250-20.|
|The ETH/USD pair may continue to move down since it broke a major bullish trend line on the 2-hours chart.|
Technically, the 2-hours chart suggest that the recent decline in ETH/USD was crucial, signaling a change in the trend.
Ether Price Trend Change
The market was caught recently in a bear trap, as there was a sharp downside move in Ether price. It broke a monster support area at $13.20 versus the US Dollar, and even cleared the $13.00 handle. ETH/BTC was also under pressure and traded below 0.0210BTC.
No doubt, the recent downside move is a clear signal of a trend change. I was hoping for a bounce from the $13.25-20 support, but it looks like the Ether sellers had an upper hand in taking the price down. The 30-min chart of ETH/USD suggests that the pair faced heavy offers after it broke $13.20.
There is now a bearish trend line formed on the same chart, which may act as a resistance if the price attempts to recover. Moreover, the broken support at $13.20 might now act as a hurdle for the bulls. It did the job as a resistance perfectly on many occasions earlier.
It can be considered as a technical break to change the trend from bullish to bearish. The 2-hours chart also suggests the same, as the price broke a crucial support trend line to trigger a downside move.
It has opened the doors for more losses, and if the current momentum stays intact, the price may easily test the $12.80 level. It is another important support zone where the Ether bulls may try to suppress selling pressure.