Technically, the pair is sustaining its move below 21-hour SMA and hence, seems more likely to extend its near-term downward trajectory.
ETH/USD Eyeing $11.120?
Ether price made another run towards the $11.20 support area against the US dollar yesterday, but failed to test it. There was a new low formed at $11.26, which can be considered as a lower low and a failed attempt to surpass the $11.20 support.
The price moved back higher, but could not sustain the bullish momentum, and found resistance near $11.60. There is a bearish trend line formed on the 30-min chart of ETH/USD, acting as a hurdle for an upside move. It prevented gains on more than three occasions, and as a result, there was a downside reaction.
The ETH/USD pair recently broke the 50% Fibonacci retracement level of the last wave from the $11.26 low to $11.58 high. It means the pair may have just completed a correction pattern, and could retest the last swing low of $11.26.
There is even a chance of creating another lower low below $11.26. In that situation, it would be interesting to see how the $11.20 support performs. It is likely to act as a critical barrier for any major downsides.
When we look at the 2-hours chart of ETH/USD, there is a clear bearish trend. There are two resistance trend lines, contributing to the pair's bearish momentum during the course of the week. The only hope for buyers lies with the $11.20 support.
