ETH/USD Forecast: Negative Sentiment Persists
|Ether price declined further against the US Dollar and Bitcoin to register monthly lows.|
|The ETH/USD pair formed another lower low as highlighted in yesterday’s analysis.|
|The pair traded below an important support area of $11.20 to test the $11.00 handle.|
Technically, the 4-hours chart points another downside break, and indicators extending the negative momentum.
Reasons for More Declines in Ether Price
Yesterday, Ether price was seen building on bearish momentum against the US Dollar and Bitcoin, which resulted in more declines in ETH/USD and ETH/BTC. The ETH/USD pair broke a major support area at $11.20, and almost tested the $11.00 handle.
A new lower low was formed at $11.02, which is also monthly low. The recent downside in Ether price suggests that buyers failed to hold losses, resulting in continuing losses. When we look at the hourly chart of ETH/USD, a clear break of the $11.25-20 support is visible.
The pair is currently consolidating losses, and may correct a few points higher. However, there is a bearish trend line formed on the upside, which may act as a resistance. Moreover, the broken support area at $11.20, and the 50% Fibonacci retracement level of the last decline from the $11.52 high to $11.02 low might also act as a resistance.
In short, any recovery from the current levels may find sellers on the upside. When we look at a higher time frame chart like the 4-hours, there is a clear negative bias visible. There was another bearish break yesterday, resulting in more declines in ETH/USD.
It looks like the pair is currently in the third wave of the recent decline, which means there is a chance of one more low below $11.02 in the near term.