Ethereum continue lackluster trading against US dollar amid Bitcoin strong rally. ETHUSD price crashed to $7.64 yesterday failing to hold on previous recovery bid that closed 7.92. The long bearish daily candle totally erased the gain from the mini rally and exposes price fragility. This may reduce its price towards lower zone of $7.35 (dec 12 price).
In the 4-hour chart, ETHUSD slipped below 50-day SMA on Dec 14. Meanwhile, the existing channel is far away under the 200-day SMA. The consolidation trend on the verge to form a descending pattern. The price might struggle to stage any substantial gain against firmer USD after favorable Federal Reserve policy and US economy outlook.
There was a large-scale correction yesterday in ETH price versus the US Dollar. Nonetheless, the upside swing in ETH/USD was faded, the price failed to get better of the 0.236 fibonacci retracement level of the last decline from the $8.94 high to $7.50 low. The risk of the price going lower has increased substantially after failure to managed to stay above yesterday close of 7.64. But the stochastic is entering into oversold situation, this could help the price bounce for a technical reversal. But overall condition is fairly bearish.
R1 – 7.73
R2 – 7.79
R3 – 8.10
S1 – 7.35
S2 – 6.56
S3 – 6.87
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