ETH/USD Weekly Forecast: Recovery or Fresh Lows?
|Ether price declined heavily this past week, and there was even a daily close below $10.00 versus the US Dollar.|
|The ETH/USD pair also broke a major support area on the 12-hours chart, which is currently acting as a resistance near $9.80.|
|There is a monster bearish trend line formed on the H12 chart, acting as a resistance for an upside move.|
Technically, the H12 chart indicators are well into the bearish zone, signaling a bearish bias.
Ether Price Struggle to Continue
Ethereum foundation announcement of the 4th hard fork is causing a lot of action in ETH. Ether price facing a lot of selling pressure recently, as it declined heavily not only versus the USD, but also against the BTC.
The ETH/USD pair closed below an important support area of $10.00, and ETH/BTC fell below 0.0130BTC. It is quite clear that Ether price struggled during this past week, and it looks like the downside is not over.
Looking at the charts, there are chances of more declines. The 12-hours chart of ETH/USD suggests a bearish trend with a trend line on the upside, acting as a resistance. There were many failures around the trend line, so it holds a lot of significance in the near term.
Recently, the pair broke the $10.00-$9.80 support area, which is now acting as a resistance and preventing gains. The next hurdle on the upside is around the highlighted trend line resistance. As long as the pair is below these two resistances, declines may continue.
When we drop down to the 2-hours chart, it looks like the pair is currently attempting to correct higher. However, there is a bearish trend line, acting as a barrier and stopping the upside break.
On the downside, the last swing low of $9.45 is a support area where the price may continue to find bids. A break below it could open the doors for a move towards $9.20.
So, on the downside, $9.45 is a major support, and on the upside, the $9.80-$10.00 is a breakout area.