Technically, the 6-hour chart indicators are extending losses in the bearish territory.
ETH/USD is Forming Bearish Structure
Yesterday, a new downward wave initiated with support near $822.00 in ETH/USD. The pair was not able to correct higher but, instead, dropped below this support.
Similarly, there was an increase in bearish pressure on ETH/BTC. The pair declined below a major support at 0.0750BTC and could now test the next support at 0.0720BTC.
Looking at the 6-hour chart of ETH/USD, the last downward wave completed near $780.00. The pair started the second wave and moved above the 23.6 percent Fibonacci retracement level of the last drop from the $981.64 high to $788.16 low.
However, the bullish wave faced sellers near a bearish trendline with resistance at $850.00. Moreover, the 50 percent Fibonacci retracement level of the last drop from the $981.64 high to $788.16 low prevented gains above $880.00-890.00.
As a result, a third wave got triggered and the pair declined past the $800.00 level, even breaking below the last low of $788.16, which means the price may extend declines.
This current wave could complete between $750.00 and $770.00 before Ether starts a substantial recovery. However, if the price closes above $780.00 today, we may see a comeback.
Moving down to the 2-hour chart of ETH/USD, there is a crucial resistance region forming near $810.00 and $825.00. Should the pair begin an upward correction, it will most likely face sellers near $825.00.
The overall market sentiment is negative as long as Ether’s price is below $800.00. A recovery above $825.00 may perhaps reduce the bearish pressure in the near term.