ETH/USD Rally Remains Attractive To Sellers
|Ether price extended its downside against the US Dollar, and moved towards $11.30.|
|The ETH/USD pair traded as low as $11.29 yesterday before starting a recovery.|
|The pair is currently correcting higher, but it may not be able to register healthy gains.|
Technically, the 4-hours chart indicators are all bearish, and signaling continuing weakness.
Ether Price Recovery and Decline
There was hardly anything to cheer for the Ether buyers yesterday, as the price extended its downside move against both majors (US dollar and Bitcoin). The bearish pressure was such that the price broke yesterday’s low of $11.62 and even cleared the $11.50 support.
A new low for the week was formed at $11.29 from where the ETH/USD pair started a recovery. However, the recovery did not last long, as the upside was protected just above the 38.2% Fibonacci retracement level of the recent drop from the $12.07 high to $11.29 low.
The pair is currently forming a flag pattern on the 30-min chart, and it looks like a bearish flag for downside resumption. If there is a downside break, the pair may retest the recent low of $11.29. If at all, there is a break higher, then the Ether sellers might defend the $11.80 resistance and present offers.
In my view, any major recovery in the ETH/USD pair remains attractive to sellers. The Ether buyers may find it very tough to break the walls, especially near $11.80 and $12.00.
The 4-hours chart of ETH/USD is suggesting that the pair is facing a huge amount of selling pressure. Once there was a break below the $12.00 support, there was a sharp downside move, which we can also call as collapse. The same broken support might now act as a monster hurdle in the path of recovery.