Ether Price Drifting Lower Once Again
|Ether price after facing sellers near the $11.40-50 resistance against the US Dollar started trading lower.|
|The ETH/USD pair settled below a short-term bullish trend line formed on the hourly chart.|
|There is a major support formed at $10.50, which may stop the current downside move.|
Technically, the hourly chart has a Doji pattern, which means the price may trade lower.
ETH/USD Made A Top?
Ether price recently started a recovery, but it looks like it wasn’t a real one. The ETH/USD pair found strong resistance near $11.40-50 against the US Dollar, and moved below the $11.00 handle. Similarly, the ETH/BTC pair faced a lot of bearish pressure, and declined.
Yesterday, I highlighted a bullish trend line on the hourly chart of ETH/USD, and was hoping for it to act as a support. The pair failed to remain above it, and traded below it. There was also a move below the 38.2% Fibonacci retracement level of the last wave from the $9.67 to $11.42 high.
So, there is a chance that the pair may test the 50% Fibonacci retracement level of the same wave around $10.50. The mentioned support area is very important in the short term, as it was a resistance earlier (as shown in the chart), and now may provide help to the Ether buyers.
Let’s see how the $10.50 support behaves, and if sellers succeed in breaking it, then we can say safely say the price made a short-term top. In that situation, the bearish trend may resume.
When we look at the 4-hours chart of ETH/USD, a critical rejection near the $11.40-50 resistance is visible. If the highlighted resistance zone continues to act as a barrier, there is a possibility of Ether price breaking the recently formed recovery pattern.