ETH/USD Weekly Forecast – Further Downside Potential
|Ether price extended its downside move yesterday against the US Dollar and Bitcoin.|
|There was a move below the $12.40 level in ETH/USD, as forecasted in yesterday’s post.|
|The pair is currently finding support near $12.10-00, and may attempt to correct higher.|
Technically, the 12-hours chart is signaling a monster support break in ETH/USD.
Ether Price Remains Sell Rallies?
There was no relief for the Ether buyers, as it declined further versus the US Dollar and BTC. I was hoping for a move towards the $12.40 level in ETH/USD. The pair did move down, and even broke the stated level to trade as low as $12.08.
ETH/BTC also fell and created a new weekly low below 0.0200BTC. No doubt, Ether price in a bear trend, and may continue to face sellers on the upside. When we look at the hourly chart of the ETH/USD pair, it is currently finding support near $12.10-00.
So, there is a chance of a minor correction in the near term. However, there is a bearish trend line on the same chart, waiting to act as a resistance on the upside. Moreover, the 23.6% Fibonacci retracement level of the last drop from the $13.33 high to $12.08 low is also around the same trend line.
It means the highlighted trend line resistance may act as a hurdle in the recovery for ETH/USD. If at all, there is a break above the trend line, the 50% Fibonacci retracement level of the last drop from the $13.33 high to $12.08 low may be seen as the next resistance area at $12.80.
When we look at the 12-hours chart, it highlights a bearish picture for Ether price. There are a couple of important points to note from the chart. First, there was a crucial support at $13.00, which was broken during the downside ride. Second, a bullish trend line on the same chart was also cleared by the ETH bears.
It is a clear sell signal. And, if the price corrects higher, the same broken support area may now act as a resistance.