ETH/USD Needs To Capitalize On Recent Recovery
|Ether price started a recovery move against the US Dollar and Bitcoin, but struggled to gain momentum.|
|The ETH/USD pair found offers near the $8.80 resistance, which is still acting as a hurdle for more gains.|
|There is a break noted on the 4-hours chart, but with no pace for a break above $8.80.|
Technically, the indicators on the hourly chart are turning south, which is not a good sign.
Ether Price Struggle to Break $8.80
There was a minor upside move in Ether price against the USD and BTC, but buyers failed to hold the momentum. As a result, the price is again at a risk of a decline in the short term.
So, what’s stopping further upsides in ETH/USD? There is a major resistance area at $8.80, which is acting as a strong offer zone, and preventing a break. There was another attempt made recently by Ether, but it failed to break it.
The hourly chart of ETH/USD clearly highlights the resistance area and the recent rejections. The pair is currently moving lower, broke a short-term bullish trend line, and currently testing the second trend line support.
It looks like the price may break the trend line support for a test of the 50% Fibonacci retracement level of the last wave from the $7.79 low to $8.75 high where the price may find support.
Looking at the 4-hours chart of ETH/USD, there is a bullish break visible above a bearish trend line. However, there was no momentum after the move. Meaning the chances of it being a false break are very high.
The pair has already started to struggle and currently moving down. It remains at a risk of more losses. Only if the pair manages to capitalize on the recent recovery, there is a possibility of a break above $8.80 for further gains. Until then, the pair may face a lot of selling pressure.