Ether Price Poised for Continued Weakness
|Ether continued to face sellers versus the US Dollar and Bitcoin to form new lows.|
|The ETH/USD pair traded as low as $11.85, and currently looks set for further declines.|
|There was a minor correction yesterday, but as forecasted, it found offers and moved down.|
Technically, the price is below its 20 and 100 SMA’s on the 4-hours chart, signaling a strong bear trend.
Ether remained under a heavy bearish pressure versus the US Dollar and Bitcoin. In the weekly analysis post, I stated that the price remains in a downtrend, and every rally may be considered as a selling opportunity. The price structured a short-term recovery pattern, but failed to retain the bias.
There was a channel pattern formed on the hourly chart of the ETH/USD pair, which was acting as a catalyst for a short-term correction. Once the pair completed the correction, it moved down. A new weekly low of $11.85 was formed.
An important point to note was the fact that the recent rejection was near the 23.6% Fibonacci retracement level of the last drop from the $12.98 high to $12.08 low. So, we can say that it was a perfect technical correction pattern, and then the price resumed its downtrend.
The price is currently trading in a tiny range just above $11.85, and looks like forming a tiny consolidation pattern. There is a chance that the price may correct a few points higher, but it may repeat the same pattern. It might once again fail and trade lower. An initial resistance on the upside is around the 23.6% Fibonacci retracement level of the last drop from the $12.40 high to $11.85 low.
Moreover, the 4-hours chart of ETH/USD suggests a clear bearish picture. There are two resistance trend lines on the chart, which may continue to act as a barrier for the buyers. In short, Ether price remains poised for continuous weakness.