Ether Price Trend Overwhelmingly Negative
|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.