ETH/USD: Consensus Bug Ignites Downside Break
|A Consensus bug in geth v1.4.19 and v1.5.2 was reported on the Ethereum blog, which ignited a downside move in Ether price.|
|Later, there was a fix released, which helped the price to recover some ground.|
|The ETH/USD pair broke a few important support levels and traded as low as $8.72.|
Technically, the 4-hours chart of ETH/USD points a major bearish break with negative indicators.
Ether Price Turned Bearish
There was a major decline in Ether price yesterday due to a consensus bug in geth v1.4.19 and v1.5.2, reported on the Ethereum blog. However, there was an update released later to fix the same.
After the report, Ether price traded lower against the US Dollar and Bitcoin. ETH/USD traded as low as $8.72 and ETH/BTC broke the 0.0125BTC support. It looks like the report sparked a bearish momentum in Ether price, which may continue in the short term.
The hourly chart of ETH/USD clearly suggests how deadly was the decline, taking the price below the $9.50 support area. The price traded as low $8.72 before starting a recovery. It has already moved above the 23.6% Fibonacci retracement level of the last decline from the $10.24 high to $8.72 low.
However, it may face a lot of hurdles on the way up. An initial resistance is around the broken support at $9.50. Above it, there is also a bearish trend line formed on the same hourly chart, positioned with the 50% Fibonacci retracement level of the last decline from the $10.24 high to $8.72 low.
So, it looks like the current recovery may face sellers on the upside near $9.40-50. Looking at the 4-hours chart, there is a monster bearish breakout visible.
The triangle break was a clear signal of additional declines in ETH/USD. And, the same triangle support is at $9.50, pointing the importance of the highlighted resistance. As long as the price is below $9.50, it may continue to struggle. A break above it may change the bias in favor of buyers.