Ether’s price fell significantly against the US dollar and bitcoin. ETH/USD broke the $100.00 handle and it could continue to slide in the near term.
Ether’s price declined sharply and traded below the $100.00 support against the US dollar.
A crucial bearish trendline formed with resistance at $106.00 on the 2-hour chart.
ETH/BTC extended losses and traded toward the 0.0260BTC level.
Technically, the 2-hour chart indicators are gaining momentum in the bearish territory.
Ether Price Analysis
Yesterday, we discussed the possibility of a bearish break below the $100.00 support in ETH/USD. The pair did move down and broke the $105.00 and $100.00 support levels to set a new multi month low.
ETH/BTC also gained bearish momentum and traded below the 0.0280BTC and 0.0270BTC levels. It tested the 0.0260BTC level and it seems like Ether may continue to slide toward the 0.0250BTC level versus bitcoin.
The current price action on the 2-hour chart of ETH/USD suggests that the recent break below the $100.00 handle is real and sellers remain in control. The pair failed to stay above the $105.00 support zone and declined sharply below $100.00.
A new multi month low was formed at $95.60 and later there was a short term upside correction above $100.00 and the 50 percent Fibonacci retracement level of the recent drop from the $110.18 high to $95.60 low.
However, gains were limited as Ether’s price failed to surpass the $104.00 level and the 61.8 percent Fibonacci retracement level of the recent drop. Besides, there is a crucial bearish trendline formed with resistance at $106.00 on the same chart.
Moving down to the 30-minute chart of ETH/USD, the pair is currently trading well below $100.00 and a bearish trendline, with current resistance at $102.00. Should Ether correct higher, it is likely to face sellers near $100.00 or $102.00.
The overall price action indicates that Ether convincingly surpassed the $100.00 support, opening the doors for more losses in the coming days. The next support is $95.00, below which there is a risk of a larger move down toward $80.00.
Important Resistance Levels
$100.00 and $105.00
Important Support Levels
$95.00 and $90.00
The RSI is currently near the oversold levels.
The MACD is placed heavily in the bearish zone.
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis. He strives to provide entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession and loves blogging.
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