ETH/USD Forecast: Strong Selling Interest around $8.80
|Ether price after forming a new low against the US Dollar, started a correction phase yesterday.|
|The ETH/USD pair moved higher, but the upside was capped by the $8.80 resistance.|
|There is a monster bearish trend line formed on the 2-hours chart, acting as a hurdle for an upside move.|
Technically, the 2-hours chart highlights a rejection pattern, which may ignite yet another downside move.
Ether Price recovery won’t last long?
Yesterday, there was new low in Ether price against both the USD and BTC. Later, the ETH/USD pair found support near $7.80 and started correcting higher.
During the upside move, it broke a couple of short-term resistance levels like the 61.8% Fibonacci retracement level of the last decline from the $8.92 high to $7.79 low.
However, the pair found resistance near a major area at $8.75-80. The stated area was a support earlier and now acting as a hurdle for recovery in ETH/USD. There was a strong selling interest, which pushed the pair down towards the $8.25 level.
During the recent downside, the pair broke a bullish trend line formed on the 30-min chart, and likely heading towards another similar trend line aligned at $8.10 where there is a chance of buyers taking a stand.
When we look at the 2-hours chart of ETH/USD, then we will understand why the $8.80 resistance is important. There is a monster bearish trend line formed, which acted as a barrier and prevented a break.
The pair was rejected, and as a result, a downside move is initiated. The last two candles are like shooting stars, which means the pair may be forming a short-term top.
If the recent rejection is valid, the pair might move down towards the $8.00 handle before attempting a recovery once again. On the upside, the pair needs to break the $8.80 resistance for further gains.