Ether Price Poised For Continued Weakness
|Ether price completed a short-term recovery at $11.60 against the US Dollar, and resumed its downtrend.|
|The ETH/USD pair is approaching the $11.20 level where it may find support.|
|The downside may accelerate if the pair fails to hold the stated support level.|
Technically, the ETH/USD is well below it 20 SMA on the 2-hours chart, highlighting that the bearish trend remains firm in place.
ETH/USD Bearish Trend
There was a minor upward corrective move yesterday, which was rejected near $11.60. A couple of attempts were made to break the stated resistance level, but the ETH/USD pair failed to gain momentum.
The recent rejection was just below the 50% Fibonacci retracement level of the recent drop from the $12.07 high to $11.29 low. It means the price has completed a correction pattern from the $11.29 low and resumed its downtrend.
Before resuming the downtrend, there was a break below a minor bullish trend line on the 30-min chart. The pair is now back testing the $11.29 low, but the main support is near $11.20. It holds the key for Ether price in the short term. A break below it may call for a move towards $11.00.
On the upside, there is a bearish trend line on the 30-min chart, which can be considered as a short-term resistance. However, the main hurdles on the upside for buyers can be seen while analyzing the 2-hours chart of ETH to USD.
There is a bearish trend line, which is currently acting as a resistance and pushing the price down. The last few candles on the 2-hours chart are signaling the dominant bearish trend. In my view, we may witness more declines in ETH/USD as long as there are no signs of a reversal. For a sustained upside move, the pair needs to close above $11.80, then $12.00.