ETH/USD Reverses after Tagging $7.90 Resistance
|Ether price after a consolidation moved higher against the US dollar to trade towards $8.00.|
|There was a complete rejection near the $7.90-$8.00 resistance, as the ETH/USD pair failed to settle above the stated levels.|
|The pair reversed sharply and moved down to challenge the $7.50 support area.|
Technically, the indicators on the 4-hours chart are turning south, which is a warning sign for buyers.
Ether Price Remains a Risk
Recently, Ether price managed to break the $7.75-7.80 resistance against the US Dollar. There were positive signs, but the price could not overcome selling pressure near $7.90.
The $7.90-$8.00 resistance area acted as a monster resistance for the ETH/USD. There were 3-4 attempts on the hourly chart to break the stated resistance, but the pair failed and rejected.
As a result, there was a sharp downside reaction, taking the pair sharply lower. The downside move was such that the price failed to show respect to the $7.75 support, which was a resistance area and the 61.8% Fibonacci retracement level of the last wave from the $7.58 low to $7.97 high.
There was even a push below the intraday low of $7.58 for a full test of the most important support at $7.50. The pair is currently finding bids near the mentioned support, but remains at a risk of a breakdown.
There is also a connecting trend line on the hourly chart, acting as a support. However, when we look at the 4-hours chart of ETH/USD, there is a lot of selling pressure visible.
The last H4 candle is super bearish, suggesting the price may break the $7.50 support. It won’t be an easy task to clear $7.50, but if the current bearish sentiment remains intact, there is a chance of a break.
In that case, the price may move towards $7.20. If the $7.50 holds, the $7.75 resistance may be tested again.