Ether Price To Break Crucial Support Soon?
|Ether price remained under a bearish pressure, but at the same time held the $7.50 support.|
|There is a major support area formed near $7.50 in ETH/USD, which is stopping the current downside move.|
|The 4-hours chart suggests a crucial support at $7.50, and resistance near $7.90.|
Technically, the indicators on the hourly chart are mostly bearish, but with decreasing momentum.
ETH/USD: Make it or Break it
There was no major move in Ether price since it remained in a narrow range versus the US Dollar. On the other hand, it faced a lot of sellers against Bitcoin, as ETH/BTC declined heavily.
There were continuous attempts by ETH/USD to break an important support area of $7.50. However, there was a no success so far, and the pair kept probing the stated support.
The hourly chart clearly shows how the $7.50 support is acting as a barrier and preventing a downside break. The pair is once again attempting to clear it, but likely to fail since the momentum is not there.
On the upside, there is a bearish trend line on the same chart, acting as a resistance. An initial resistance on the upside is near $7.75 formed with the trend line and the 50% Fibonacci retracement level of the last decline from the $7.97 high to $7.47 low.
When we have a look at the 4-hours chart, there is likely a range pattern forming. The range support is near $7.50, and the resistance is at $7.90. The price is consolidating in the highlighted range, and preparing for the next leg.
In the highlighted range, the number of bearish candles are lot more compared with the bullish candles. However, the Ether sellers need to gain control if the price has to break the $7.50.
In my view, the chances of a downside break are very high considering the H4 chart indicators.