Ether price declined to a new 4-month low against the US Dollar, and it looks like ETH/USD may weaken further if the current sentiment remains intact.
Ether price traded further lower against the US Dollar and Bitcoin, as buyers failed to hold the downside.
The ETH/USD pair failed to find support at $8.00, and broke the last low of $7.79.
A new 4-month low was formed, and it looks like the pair may continue to decline in the short term.
Technically, the indicators on the hourly chart remain in the negative zone with no sign of a correction.
Ether Price to Test $7.00?
In yesterday’s analysis, I highlighted how important the $8.00 support area is for Ether price against the USD. The price failed to hold the stated support and moved down sharply.
There was a sharp decline once the price broke the $8.00 support. ETH/USD not only tested the last low of $7.79, but also broke it. A new 4-month low at $7.32 was formed before the price started a minor recovery.
The price at the moment is attempting a recovery, and approaching a support turned resistance level at $8.00. The stated level was a support earlier, and now may act as a hurdle for Ether price. It also coincides with the 38.2% Fibonacci retracement level of the last decline from the $8.74 high to $7.32 low.
So, the $8.00 level might prevent any further recovery. If it succeeds in preventing an upside move, then there are chances of ETH/USD declining one more time.
In that situation, a retest of $7.50 is likely where the price may attempt to form a base. The 4-hours chart of ETH/USD also points the significance of the $8.00 resistance. There is a bearish trend line on the chart, which is a major barrier for Ether price in a recovery.
It looks like ETH/USD may consolidate or trade in a range for some time with support at $7.50 and resistance at $8.00 before the next move.
Important Resistance Levels
$8.00 and $8.20
Important Support Levels
$7.50 and $7.35
The RSI technical indicator is currently correcting from the oversold readings, but with no momentum.
The MACD is strongly in the bearish zone, and calling for more declines.
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial marketsETHNews is commited to its Editorial Policy
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