ETH/USD – EXP Attack Destroys Ether Bullish Trend
|Ether price traded sharply lower yesterday against the US Dollar and Bitcoin due to an EXP attack as reported yesterday.|
|The ETH/USD pair collapsed and moved towards the all-important $12.00 handle.|
|The $12.00-10 support area played its role well and prevented any further declines.|
Technically, the 2-hours chart points importance of the current support area, which must hold for now.
Ether Price Important Support Area
Yesterday, I highlighted how there was a chance in the trend for Ether price, and I was hoping for a move towards the $13.00 handle versus the US Dollar. However, there was an attack reported yesterday that was increasing block processing times on certain blocks.
As we all know we just witnessed the hard fork to prevent DDoS attacks, and within a few days a second attack was reported. Although, it was EXP attack, it caught trader’s attention. As a result, there was a sharp downside move in both ETH/USD and ETH/BTC.
The ETH/USD pair declined from $12.60 to $12.00, where the Ether buyers just managed to protect the downside move. The stated level and $12.10 represents a major support area. As we all know, it was a crucial resistance earlier, and now it is no surprise that it is acting as a support.
The price is currently correcting higher, but facing resistance in the form of a bearish trend line on the 30-min chart. The 23.6% Fibonacci retracement level of the last decline from the $12.75 high to $11.99 low is also positioned near it.
So, it won’t be easy for the Ether bulls to break it and ignite further recovery. However, the pair remains supported on the downside, as can be seen from the 2-hours chart. It shows how a bullish trend line and the $12.00 level is acting as a strong support. So, there is a chance that the price may recover further, but major gains seem unlikely.