Technically, the 2-hours chart indicators are super bearish, signaling further declines.
Ether Price Continues to Weaken
ETH continues to inch lower following the break below the 100-day simple moving average. It declined heavily against the US Dollar and broke an important support area at $7.00.
A new 9-month low below $6.20 was formed in ETH/USD, and still there is no sign of a recovery in the short term. Once there was a break below $7.00, the price retested the same level, but failed to overcome selling pressure.
The ETH/USD pair is down by more than 20% today, and it looks like there can be more losses in Ether price. The next support on the downside could be around the $6.20-$6.00 area.
The stated support area holds a lot of importance, and it won’t be easy for sellers to break. The price bounced on 3-4 occasions earlier from the stated level and reversed the bearish momentum.
So, we can say that the price is reaching a technically crucial support level, and there are chances of a bounce back. On the upside, an initial resistance is at $7.00, and a bearish trend line formed on the hourly chart. The next resistance is around $7.50, which was a support earlier.
There is a descending channel pattern formed on the 4–hours of ETH/USD, which is taking the pair down. The pair is currently attempting a close below it. So, it would be interesting to see how the pair trades in the near term.
Overall, the $6.00 support is the key, and it must hold the downside move. If it fails to do so, then there can be a sharp downside move towards $5.00.