Technically, the 2-hour chart indicators started recovering from the oversold levels.
ETH/USD Could See Modest Recoveries
Yesterday, there was no major recovery in ETH/USD and the pair remained in a downtrend. It declined below the $725.00 and $700.00 support levels to register more than 20 percent losses this week.
On the flip side, ETH/BTC recovered further and traded toward the 0.0780BTC level. Above 0.0780BTC, the pair may retest the 0.0800BTC pivot level.
Looking at the 12-hour chart of ETH/USD, the pair declined sharply after it failed to hold an important support at $800.00. It traded well below the 50 percent Fibonacci retracement level ($772.88) of the last wave from the $564.11 low to $981.64 high. The last few candles suggest a major increase of selling pressure on Ether, and the next major support on the downside rests around $600.00.
The pair recently traded as low as $642.35, which is below the 76.4 percent Fibonacci retracement level of the last wave from the $564.11 low to $981.64 high. It means the price could retest the last low of $564.11 if sellers remain in control.
The 2-hour chart of ETH/USD suggests that the pair has started a short-term upward correction, and there a crucial bearish trendline forming with current resistance at $720.00. A close above this resistance could start a major recovery toward $800.00.
The overall bias is bearish as long as the price is below the $800.00 pivot level.