October 25, 2016 11:00 AM
ETH/USD finally broke the consolidative mode to the downside, and posted a new weekly low of $11.62. More losses are likely to follow.
Ether price moved down below $11.80 against the US Dollar to break a major support area.
The ETH/USD pair cleared the range support area at $12.00, which ignited a sharp downside move.
The pair is currently attempting to recover, but may face sellers near the broken support area (now resistance).
Technically, the 2-hours chart clearly points a major break, which may put a lot of pressure on the Ether buyers.
ETH/USD Bearish Market Sentiment
Yesterday, I highlighted a bearish breakout pattern on the 30-min chart of the ETH/USD pair, and mentioned that the pair remains at a risk of a breakdown. The pair did move down yesterday, and broke a monster support area of $12.00.
I highlighted the importance of $12.00 on many occasions as a support area. A break below it means the market sentiment for the Ether may be short-term bearish. Ether price declined during the past few hours, and posted new a weekly low versus the US Dollar and Bitcoin.
ETH/USD traded as low as $11.62, and ETH/BTC declined below 0.0180BTC. There was a lot of bearish pressure, which can be clearly seen from the charts. Currently, the ETH/USD pair is attempting a recovery, but likely to face sellers near the 23.6% Fibonacci retracement level of the recent drop from the $12.13 high to $11.62 low.
There is also a bearish trend line formed, which can be considered as a resistance zone along with the stated Fibonacci level. The most important point is the fact that the broken support area at $12.00 might now act as a barrier for the Ether buyers.
It won’t be easy for the price to surpass the broken range support area (now resistance), as seen on the 2-hours chart of ETH/USD. The Ether sellers are likely to appear around $12.00 if the price continues to recover.
Major Resistance Levels
$12.00 and $12.10
Major Support Levels
$11.60 and $11.50
The RSI technical indicator broke a consolidative pattern, and moved below the 50 level.
The MACD has now moved in the bearish zone, signaling a downside break.
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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