Technically, the 4-hour chart indicators moved into the bearish territory after a long bullish stand.
Can Ether Price Bounce Back?
There was a lot of action during the past two sessions in Ether price, as it was seen struggling against both the US Dollar and Bitcoin. ETH/USD performed worst and moved below the $17.00 mark. On the other hand, ETH/BTC weakened by more than 5% and slipped below 0.0145BTC.
Yesterday, we discussed how Ether price was forming a short-term top, and remained at a risk of more losses. It continued to face offers lately, and was not able to settle above the $18.60 resistance.
It resulted in a sharp downside move. The ETH/USD pair was down from $18.60 to well below $17.00 and formed a new weekly low at $16.26. It looks like a perfect 5-wave downside move. The pair is once again attempting a recovery just like yesterday, and facing resistance near $17.60.
There is a bearish trend line formed on the hourly chart with resistance near $17.60. It also coincides with the 61.8% Fibonacci retracement level of the last decline from the $18.60 high to $16.26 low.
It won’t be easy for Ether buyers to push the price above the trend line resistance at $17.60. If there is a failure, ETH/USD might move down and retest the $16.50 area.
Looking at the 4-hour chart, it looks like the price successfully closed below the $18.20-18.60 support area. The same area is now preventing gains and acting as a barrier.
Overall, the current price action suggests that Ether price might follow a bearish structure until there is a base formed. The most important support on the downside is $15.00, where buying interest could develop if the price extends the current downside.
A bounce back should not be discredited if there is a close above $17.60.