Technically, the hourly chart indicators are slowly recovering from the oversold territory.
Ether Price Analysis
After a decent upward move above the $125.00 resistance, ETH/USD failed to surpass the $128.00 hurdle. The pair topped out at $128.07 and later started a sharp downward move below the $125.00 and $120.00 supports.
ETH/BTC also failed to clear the 0.0340BTC resistance, resulting in a fresh drop back to 0.0330BTC. Should Ether trade below 0.0330BTC, the price could continue to decline toward the 0.0325BTC and 0.0320BTC supports.
Starting with the hourly chart of ETH/USD, the pair was clearly rejected near the $128.00 level. The pair started a steady decline and broke the $125.00 support plus the 50 percent Fibonacci retracement level of the upward move from the $118.82 low to $128.07 high.
Additionally, sellers pushed the price below a crucial bullish trendline with support at $124.00 on the same chart. It opened the doors for more losses, and the price declined sharply below the $120.00 support and the $118.82 swing low.
A new intraday low was formed at $117.24; later, the price started a short-term upside correction. Ether traded above the $118.00 level and could test the $120.00 resistance plus the 23.6 percent Fibonacci retracement level of the recent drop from the $128.07 high to $117.24 low.
However, the main resistance is near the $123.00 level, a broken channel, and the 50 percent Fibonacci retracement level of the recent drop. A successful close above the $123.00 resistance may set the pace for an upward move above $125.00 and $128.00.
On the flip side, if Ether buyers fail to gain momentum above $120.00 or $123.00, the price will most likely resume its decline below $117.00 and $115.00 in the coming sessions.