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.