Technically, the daily chart indicators are about to reach oversold levels in the bearish territory.
ETH/USD Extended Decline
There was a solid increase in selling pressure on ETH/USD as it broke a couple of important support levels at $600.00, $580.00 and $550.00.
Similarly, ETH/BTC extended declines and it failed to hold a key support at 0.0700BTC. It is currently in a bearish zone and it may continue to decline toward the 0.0650BTC support.
Let’s look at the daily chart of ETH/USD to understand the current price action below the $750.00 pivot level. During February 2018, there was a recovery initiated from the $560.00 swing low. The pair corrected higher, peaking above the $900.00 level.
However, the pair could not hold gains and failed to break a crucial bearish trendline with current resistance near $640.00. A fresh downside wave started and the price broke the 50 percent Fibonacci retracement level of the last leg from the $564.10 low to $981.64 high.
Sellers took control and the price even broke the $564.10 low. Ether’s price settled below a significant support at $540.00-580.00, and the current decline could extend toward the 1.236 Fibonacci extension of the last leg from the $564.10 low to $981.64 high at $465.00.
Moving down to the 2-hour chart of ETH/USD, the pair is under a lot of bearish pressure with an immediate support at $500.00-510.00. On the upside, the broken support at $570.00 and a bearish trendline with resistance at $565.00 are likely to prevent recoveries in the near term.
Overall, the current bias is bearish with resistances on the upside at $570.00 and $640.00. An important support is at $500.00, with a break below this last could push the price toward $475.00.