ETH/USD Forecast – New Low Likely Before Recovery
|Ether price corrected a few points against the US Dollar, but later it found resistance.|
|The ETH/USD pair is once again moving down, and may challenge yesterday’s low of $11.99.|
|If the Ether buyers fail to protect the $12.00 support area, then a new low is likely in the short term.|
Technically, the hourly of ETH/USD is pointing a rejection pattern and signaling a downside move.
Ether Price Bearish Trend
Yesterday, I highlighted how there was a change in the trend for Ether price due to the EXP attack. The price started moving down, and traded as low as $11.99. Recently, there was a minor correction initiated from the lows since the $12.00 support area holds a lot of importance.
However, the stated correction could not last long. The price traded towards the 23.6% Fibonacci retracement level of the last decline from the $13.06 high to $11.99 low at $12.26 where it found sellers. The pair is currently moving down, and following a bearish trend line formed on the hourly chart.
The trend line is acting as a resistance for the price and preventing an upside break. As long as the price is below the highlighted resistance, there is a chance of it testing the all-important $12.00 handle once again. It would be interesting to see if the Ether buyers can protect the mentioned support one more time or not.
No doubt, it won’t be easy for them, as there is an increase in bearish sentiment for the Ether not only against the US Dollar, but also versus the Bitcoin. More bearish signs are visible on the 4-hours chart of ETH/USD.
There was a rejection pattern formed near $12.25, which is pushing the price down. However, the ETH bulls must not lose hope, as there are heavy supports in the form of bullish trend lines on the downside. I agree it won’t be easy for the buyers to push the price higher, but at the same time sellers might also struggle to break the $12.00 handle.