Technically, the 6-hour chart indicators have reached extremely oversold levels.
Can ETH/USD Move Past $650?
Yesterday, we saw an increase in bearish pressure on ETH/USD. The pair failed to hold a key support at $640.00 and even declined below the $600.00 handle before finding bids near $575.00.
ETH/BTC seems to be under a minor selling pressure below 0.0750BTC. It may move down toward the 0.0720BTC level, which is an important support.
Starting with the 6-hour chart of ETH/USD, there was a bearish break below a crucial contracting triangle with support at $690.00. It opened the doors for more declines and the pair fell below the $640.00 and $600.00 support levels.
It traded as low as $572.29 and is currently correcting higher. The current 6-hour candle is positive, but the pair is facing a lot of resistance. First, the 23.6 percent Fibonacci retracement level of the last decline from the $894.91 high to $572.29 low.
Second, the broken support at $640.00-650.00 will most likely act as a significant barrier. The third resistance on the 2-hour chart of ETH/USD sits at $675.00, which was also a support earlier.
The last resistance is the 50 percent Fibonacci retracement level of the last decline from the $894.91 high to $572.29 low around $730.00. On the downside, the recent low of $572.29 seems to be a short-term bottom.
A break below the $575.00 support zone could push Ether’s price toward the next major support at $540.00. The overall market sentiment is currently bearish until ETH/USD surpasses the $650.00 resistance.