ETH/USD Downtrend Intact for This Reason
|Ether price during the recent decline traded as low as $9.45 against the US Dollar.|
|The ETH/USD pair is currently correcting higher, but may face sellers near the $9.75-80 resistance.|
|There is also a descending channel pattern formed on the 4-hours chart, acting as a catalyst for the downside move.|
Technically, the 4-horus chart indicators continue to head south, suggesting more declines.
Ether Price Support Now Resistance
There was a monster break in Ether price yesterday, as it cleared the all-important $10.00 support against the US Dollar. The downside move was accelerated and the price traded as low as $9.45.
There is a base forming at $9.45 in ETH/USD, and the pair is currently attempting to correct higher. However, a recovery won’t be easy as there are many hurdles on the way up, waiting to prevent gains in Ether price.
An initial resistance on the hourly chart is a bearish trend line at $9.75. The stated level is also the 23.6% Fib retracement level of the last drop from the $10.35 to $9.45 low. The next resistance on the upside is just above $9.80.
The $9.80 resistance was a support earlier, and now it may act as a barrier for an upside move. When we look at the 4-hours chart of ETH/USD, there is a monster descending channel formed. It is currently acting as a downside move catalyst and taking the pair down slowly.
The channel support on the downside is around $9.50-40, and the resistance is at $10.00. It looks like the pair has formed a clear downtrend, which may continue until there is a change in the market sentiment for Ether. The upcoming 4th hard fork may play an important role, and could spark a lot of moves in ETH/USD and ETH/BTC.
So, one should trade carefully and plan accordingly.