Technically, the 4-hours chart indicators are reaching extreme levels, which may spark a correction.
ETH/USD: $10 Now Resistance
I kept highlighting the importance of the $10.00 support in ETH/USD, but it looks like the bearish pressure on Ether price did the trick. The price traded below the stated support and there was even a H4 close, signaling a crucial break.
Looking at the hourly chart, there was a clear break below $10.00. The bearish trend line was able to protect the upside move and pushed the price down. A new low was formed at $9.86, and the price is just consolidating below $10.00 at the moment.
There is a very tiny range formed, and it looks like the price is preparing for another downside move. On the upside, the same support area at $10.00 may now act as a resistance and prevent gains. Moreover, the 23.6% Fib retracement level of the last decline from the $10.64 high to $9.86 low.
Even the 4-hours chart of ETH/USD is signaling a clear downtrend. The recent break was crucial, and may ignite further pressure. On the upside, there are a couple of bearish trend lines formed, which acted as a hurdle on many occasions.
The recent two H4 candles are tiny bullish, and may produce a bounce in Ether price. However, the highlighted trend lines may come into the picture in that case. In short, it looks like ETH/USD broke a monster support area, which may result in an increase in the bearish pressure.