Technically, the 30-min chart indicators have turned bearish, which is an initial warning sign.
ETH/USD Heading Lower?
We saw ranging and consolidation moves in Ether price against the US Dollar and Bitcoin for the past few sessions. However, it looks like there is a risk emerging of a downside break in ETH/USD.
There is a monster bullish trend line on the 2-hours chart of ETH/USD, which is currently at a risk. The pair is attempting a downside break, which is not yet confirmed.
If Ether price closes below the trend line support, it may open the doors for a downside reaction. In that case, there can be a slide towards the most important support area at $8.10- 8.00.
There was a failure to break higher above a bearish trend line on the same chart, which resulted in an increase in the bearish pressure. The pair has closed below the 23.6% Fibonacci retracement of the last wave from the $8.02 low to $8.62 high, which adds to the pressure.
When we drop down to the 30-min chart of ETH/USD, there is a break below a support trend line visible, which called for a downside move. The pair at the moment approaching an intermediate support at $8.35 (hourly pivot for today).
On the upside, there is a bearish trend line, acting as a resistance and barrier for a push higher. I think if the pair fails to break $8.35 and bounces back, then it may avoid a downside break on the 2-hours chart trend line.
So, the $8.35 support holds the key in the short term for a downside break towards $8.10- 8.00.