ETH/USD: Double Bottom or Further Declines
|Ether price remained under a lot of pressure against the US Dollar and Bitcoin, and created new weekly low.|
|The ETH/USD pair extended its yesterday’s downside, and tested the $12.80 support as forecasted.|
|The pair is likely forming a double bottom pattern, which if fails may put further bearish pressure on Ether.|
Technically, all indicators are pointing south with almost no chances of a recovery in the short term.
Ether Price Forming Base for Recovery?
There was no respite for the Ether, as it continued to weaken against the US Dollar and Bitcoin. Yesterday, I stated that the ETH/USD pair can move down towards the $12.80 support. It did trade lower, and tested the stated level.
There was a descending bearish channel formed on the hourly chart, which was broken during the recent downside move. A new weekly low of $12.75 was formed (average price). Ether price is currently attempting to recover, but facing offers on the upside.
An initial resistance is around the channel upper trend line, and the 23.6% Fibonacci retracement level of the last drop from the $13.52 high to $12.75 low. In short, if I want to point out the first hurdle, it’s at $13.00. I think it won’t be easy for the Ether buyers to push the price above it.
When we look at the positive side, there is likely a bullish pattern forming on the 4-hours chart of ETH/USD. A double bottom pattern is slowly forming at $12.80. No doubt, it’s an important support zone, and if bulls put up a fight, the price may recover.
On the other hand, if they fail, there can be further declines. The price may even head towards $12.50, which can be considered as the next stop for sellers.