Technically, the 2-hour chart indicators are bouncing from the extremely oversold levels.
ETH/USD Could Extend Upward Correction
There was a sharp rise in bearish pressures on ETH/USD, which pushed the pair below a key support at $500.00. Later, the pair found support near $455.00 and started an upward correction.
On the other hand, there were further losses in ETH/BTC. The pair failed to stay above 0.0650BTC and declined to test the 0.0620BTC support. It is currently correcting higher, but it will most likely face sellers near 0.0700BTC.
Starting with the 2-hour chart of ETH/USD, the pair clearly struggled to recover above $620.00 and declined. During the decline, it broke two important supports: $580.00 and $500.00.
However, the pair found support above $450.00 and went on to start an upward correction, where it surpassed the 23.6 percent Fibonacci retracement level of the last drop from the $626.18 high to $545.86 low.
The current technical structure is positive, but Ether’s price is facing a crucial bearish trendline with resistance at $550.00 on the same chart. A break and 2-hour close above $550.00 could really boost the market sentiment in favor of Ether buyers in the near term.
Dropping down to the 30-minute chart of ETH/USD, the pair is forming a bullish flag pattern with resistance at $550.00. On the downside, the flag support is at $510.00.
To sum up, the current recovery is positive and should Ether succeeds in settling above the $550.00 resistance, there may be further gains in ETH/USD toward $600.00-620.00.