October 27, 2016 10:42 AM
ETH/USD resumed its downtrend this morning, and registered a failure near $11.60. ETH/BTC was also under heavy selling pressure, signaling further declines.
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.
Major Resistance Levels
$11.60 and $11.80
Major Support Levels
$11.20 and $11.00
The RSI technical indicator is moving away from the 50 level, signaling further declines.
The MACD is gaining bearish momentum and extending the slope.
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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