ETH/USD Poised To Extend Its Decline
|Ether price stayed below the $7.90 resistance against the US Dollar, and currently looks set for further declines.|
|The 30-min chart of the ETH/USD pair suggests a lower low pattern, which can ignite more losses in the short term.|
|The 2-hours chart has a declining pattern, having a potential to push the price towards $7.55-7.50.|
Technically, the indicators on the 2-hours chart are extending their losses within the negative territory.
What’s Important Support for Ether Price?
Recovery off the $7.49 low was capped by a monster resistance at $7.90 and subsequent weakness pushed Ether price lower against the US Dollar, turning focus to the downside.
When we look at the technicals, they are bearish on all timeframes, adding pressure on the Ether. However, the ETH/USD pair has a major support on the downside at $7.50. It can be considered as a rejection area, where ETH buyers may take a stand.
The 30-min chart suggests that the pair is forming a lower low structure, which could end once there is a new low formed on the daily basis. So, there is a chance of a decline towards $7.55 before a recovery is possible.
There is also a bearish trend line on the same chart, capping the upside move near $7.70. A break above the stated level or lower low may trigger a short-term recovery in ETH/USD.
The next resistance in that case could be around the 50% Fibonacci retracement level of the last decline from the $7.94 high to $7.57 low at $7.80.
Looking at the 2-hours chart, there is a descending channel pattern formed, taking the pair down slowly and steadily. However, the pattern has reached a finishing point, and we may soon witness a break.
I feel, there is a chance of a downside thrust towards $7.60 or $7.55 before the pair starts a recovery to challenge the all-important $7.90 resistance.