October 24, 2016 10:51 AM
ETH/USD is currently trading near a major support area at $12.00, which must hold if the pair has to recover going forward.
Ether price was seen under a bearish pressure today against the US Dollar.
The ETH/USD pair is currently trading near the $12.00 support, and sellers attempting a break.
A break below the mentioned support area may trigger a downside move in the short term.
Technically, the 30-min chart is pointing a short-term bearish breakout pattern.
ETH/USD in Trouble
It looks like it is a bad start for the Ether this week against the US Dollar and Bitcoin. Both ETH/USD and ETH/BTC pairs were seen under a bearish pressure this morning. The ETH/USD pair traded with a negative tone, and tested the $12.00 support area.
The pair is currently struggling into the bottom of the support zone, and remains at a risk of a breakdown. When we have a look at the 30-min chart of the ETH/USD pair, there is a bearish trend line on the upside, and the $12.00 support on the downside.
Since the stated support area acted as a barrier for sellers many times, there is a contracting triangle forming. The price is currently trading near the triangle support trend line, and it looks like the Ether buyers are finding it hard to protect a downside break.
They must protect it, else there is a huge risk of a sharp decline in ETH/USD. The next support in that case may be around $11.80. However, once there is a break and close below the $12.00 support, it would be very difficult for the ETH price to climb back higher.
The 2-hours chart of ETH/USD also shows that the long formed range consolidation pattern is at risk. Either we will soon witness a bounce from the $12.00 support or a break below it for a move towards the next support zone. Buyers must trade carefully, as the market sentiment is not bullish at the moment for the Ether.
Major Resistance Levels
$12.10 and $12.25
Major Support Levels
$12.00 and $11.80
The RSI technical indicator is below the 50 level with no sign of a recovery.
The MACD is comfortably placed in the bearish zone, and signaling further losses.
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial marketsETHNews is commited to its Editorial Policy
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