ETH/USD Testing Support Confluence Near $8.00
|Ether price corrected lower against the US Dollar, and currently testing a major support area at $8.00.|
|The 6-hour chart of ETH/USD clearly suggests that the pair is holding a crucial support area.|
|The same chart also points why the price failed to break the $8.50-8.60 resistance area.|
Technically, the indicators on the 2-hour chart are mild bearish putting the price at risk.
Ether Price Correction Wave
There was a correction wave initiated in Ether price yesterday against the US Dollar and Bitcoin. The ETH/USD pair moved below the $8.20 support area and currently testing a major support area at $8.00.
Yesterday, I mentioned that there is a chance of Ether price extending the current correction wave towards the $8.00 support. The stated level holds a lot of importance, as it was a resistance earlier and now acting as a barrier for more declines.
The same area also represents the 38.2% Fib retracement level of the last wave from the $7.04 low to $8.55 high. When we look at the 6-hour chart of ETH/USD, there is a clear hurdle for sellers near $8.00.
It may protect more downsides in Ether price, and at the same time, if there is a break, then the price could again come under pressure. The recent failure near $8.50-8.60 was also important. It represents the previous swing area for ETH, which protected gains earlier in the second week of Dec 2016.
When we have a look at the 2- hour chart of ETH/USD, it looks like the price is currently struggling to hold the $8.00 support. The last 2-3 bearish candles on the 2-hour chart of ETH/USD clearly suggests that the pair might break the highlighted support.
In the stated case, the $7.85-7.80 level may come into the picture as a support. It points the 50% Fib retracement level of the last wave from the $7.04 low to $8.55 high.
Overall, the $8.00 holds a lot value, must remain intact if the price has to bounce back.