ETH/USD Weekly Forecast: Odds of Further Declines Increase
|Ether price declining streak continued this past week against the US dollar and Bitcoin.|
|Every minor correction in both ETH/USD and ETH/BTC was sold aggressively.|
|New 4-month low was formed, and it looks like there can be more declines in Ether price going forward.|
Technically, the 12-hours chart indicators are super bearish and suggesting that selling pressure likely to stay for some time.
Ether Price to Test $7.00?
There was a continuous decline in Ether price this past week, taking it below an important support area of $8.00. Whenever, there was an attempt of a correction, the price found resistance and moved down.
The 2-hours chart of ETH/USD highlights a declining pattern with a bearish trend line on the upside. The pair recently broke the $8.00 support and settled below it. The same level acted as a resistance later, and prevented a recovery.
The trend line is acting as a downside move catalyst and not allowing the Ether buyers from taking the price higher. It looks like the $8.00 resistance is a major hurdle at present, as it also coincides with the 50% Fibonacci retracement level of the last decline from the $8.60 high to $7.38 low.
If there is break and close above the highlighted resistance area, then there is a chance of further upsides in the near term. However, it won’t be easy for buyers to push the price above it.
When we look at the 12-hours chart of ETH/USD, there are clear bearish signals. The price declined heavily during the past few weeks and faced a lot of selling pressure.
There are two bearish trend lines formed on the H12 chart, acting as a resistance on the upside. The first trend line is around the $8.00 level, suggesting its importance as a resistance.
The last 2-3 candles on the chart suggests that the price is struggling to gain upside move, and finding it very tough to clear the highlighted resistance area. Overall, it looks like the $8.00 resistance area is crucial, and as long as the price is below it, there can be more losses.