Technically, the 2-hour charts are currently near extreme oversold levels in the bearish territory.
Ether Price Analysis
In the weekly analysis of ETH/USD, we discussed the importance of the $123.00 and $116.00 support levels. The pair failed to hold these supports and traded to a new monthly low at $114.64.
ETH/BTC also extended losses below the 00.0340BTC support levels. It even broke the 0.0332BTC support and tested the next key support at 0.0325BTC, where buyers took a stand. The pair may correct higher, but the 0.0340BTC and 0.0350BTC resistance levels could prevent gains.
Looking at the 2-hour chart of ETH/USD, there was a downside break below the $123.00 support. The pair traded below the $120.00 and $116.00 support levels to move further into a bearish zone. A new monthly low formed at $114.64; later, the price started a short-term correction.
To the topside, there is a significant bearish trendline formed with resistance at $123.00 on the same chart. A successful break above the bearish trendline and $125.00 is a must for a decent recovery in the coming days.
Moving down to the 30-minute chart of ETH/USD, the pair corrected above $117.00, but it struggled near the $119.00 level and the 50 percent Fibonacci retracement level of the recent drop from the $126.26 high to $114.64 low.
The price is currently consolidating above $115.00, and it seems like buyers could continue to face a strong selling interest near the $120.00, $123.00, and $125.00 levels.
The risk remains to the downside as Ether settled below the $123.00 support. The short-term picture is bearish, as ETH/USD remains well below a negative 20 SMA and technical indicators hold well into bearish ground. The pair would need to break below $114.00 to confirm a downward extension in the coming hours that can extend to $110.00 or $105.00.