ETH/USD Trading Above a Crucial Support
|Ether price declined further intraday, and broke the last low of $10.24 against the US Dollar.|
|The $10.10-00 support area holds a lot of importance, and must hold if ETH/USD has to recover going forward.|
|There is a bearish trend line formed on the hourly chart with resistance on the upside at $10.35.|
Technically, the indicators on the hourly chart are strongly bearish and signaling more declines.
Can Ether Price Pierce $10.00?
There was an increase in selling pressure intraday, resulting in a decline of Ether price versus the US Dollar. The ETH/USD broke the last swing low of $10.24, and traded as low as $10.12.
The pair just managed to hold the all-important $10.00-10 support area, and currently consolidating above it. Looking at the hourly chart, it looks like the price is under a strong resistance area, which puts it at a risk of additional losses.
On the upside, there is a bearish trend line formed on the hourly chart of ETH/USD with resistance at $10.35 and $10.40. The 38.2% Fibonacci retracement level of the last decline from the $10.80 high to $10.12 low is also around the trend line resistance.
So, it may prove to be a crucial resistance, and it won’t be easy for the price to break it. Moreover, the pair is also below its 100-hours simple moving average, which is a bearish signal.
On the downside, I stated earlier as well that the $10.00 area is a monster support, and it may produce a bounce in ETH/USD. I think the time has come when the Ether buyers may be put to test, and let’s see if the price can stay above the stated support area or not going forward. A break below it could ignite a sharp and nasty decline in ETH/USD.