Technically, the indicators on the 4-hour chart are extending their bearish slope, signaling more losses.
Ether Price Struggle Continues
We have been tracking a major support area in ETH/USD pair at $7.50. The pair kept on finding bids around the stated level until yesterday.
The downside move got momentum, and as a result, there was a break below the mentioned important support. The pair extended its decline and traded a few points below $7.20 to post a new weekly low of $7.12.
The ETH/BTC pair was also under a lot of bearish pressure due to the recent rise in Bitcoin price, which further increased bearish pressure on the Ether.
The hourly chart of ETH/USD clearly suggests that the pair struggled lately, and failed to hold $7.50. At the moment, there is a recovery underway, which may face resistance near a bearish trend line formed on the hourly chart.
However, the most important resistance is near $7.50. As we all know it was a crucial support, and going forward could act as a barrier for more gains.
Yesterday’s highlighted range support around the same level on the 4-hours chart was broken. It now represents the 23.6% Fibonacci retracement level of the last decline from the $8.62 high to $7.12 low.
So, we can say that the $7.50 level is a now a critical resistance zone. If there is a correction in ETH/USD, there can be offers near the stated resistance.
On the downside, a daily close below the $7.20 level may call for a full test of the $7.0 handle in the near term.