Key Highlights
Ether price failed to hold the double bottom support at $12.80, and declined further.
The ETH/USD pair almost tested the $12.50 level, as highlighted in yesterday’s post.
More losses are likely, as the momentum is clearly in favor of Ether sellers.

Technically, the pair closed below the 20 and 100 MA’s (hourly chart), signaling further downsides.

ETH/USD to Decline Further?

Yesterday, I highlighted a double bottom pattern, and mentioned that either Ether price will recover soon or decline below the $12.80 support to test $12.50. The price failed to hold the double bottom pattern support and extended its downside towards $12.50.

Ether Price Analysis Chart

There was a minor consolidation above $12.80, and then the ETH/USD pair declined further. A new weekly low of $12.58 was created. The pair is once again consolidating, and it looks like it may repeat the same pattern once again.

It means the consolidation is about to finish and the price is set for more losses. There is a high probability of a test of $12.50. If the Ether bulls failed to protect losses, a move towards $12.40 is also possible.

ETH/USD Forecast Chart Ethereum

On the upside, there is a bearish trend line formed on the hourly chart of the ETH/USD pair, which can be considered as a resistance area if the pair corrects higher. Moreover, the 23.6% Fibonacci retracement level of the last drop from the $13.51 high to $12.58 low may also be considered as a hurdle on the upside.

The 4-hours chart of ETH/USD clearly highlights a failed double bottom pattern, but there is another important point to note. The same failed support area may now act as a resistance and stop any recovery from the current or a bit lower levels. Overall, the price remains in a downtrend and any corrections may face sellers on the upside.

Important Resistance Levels

$12.80 and $13.00

Important Support Levels

$12.50 and $12.20

Hourly RSI

The RSI technical indicator is still in the oversold readings, but no signs of bulls.

Hourly MACD

The MACD moved is positioned perfectly in the bearish zone with no sign of a recovery.
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Ether Technical Analysis

Today ETH/USD Weekly Forecast: Ethereum Price Bullish Development
10-09-2016 ETH/USD Weekly Forecast – Further Downside Potential
10-08-2016 Ether Price ‘Flash Crash’ Post Failed Double Bottom
10-07-2016 ETH/USD: Double Bottom or Further Declines

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