Technically, the 6-hour chart indicators are declining sharply in the bearish territory.
ETH/USD Remains at Risk of More Declines
Yesterday, we discussed how ETH/USD broke a significant support at $550.00 and started a fresh downward wave. The pair declined further, struggling to hold the $515.00 support level.
Similarly, ETH/BTC remains in a bearish trend and it failed to hold the 0.0620BTC support. The current trend may accelerate and the pair could even break the 0.0600BTC support.
The 6-hour chart of ETH/USD suggests that the pair struggled to surpass a crucial bearish trendline with current resistance at $570.00. As a result, there was a downward reaction and the price broke a connecting bullish trendline at $580.00.
It seems like the pair is under a lot of pressure and is trying to avoid a retest of the last swing low of $454.86. A daily close below $500.00 would increase bearish pressure on Ether.
Looking at the 2-hour chart of ETH/USD, the pair is attempting a close below a major support at $515.00. Should there be a 2-hour close below this level, Ether’s price will most likely pierce the $500.00.
There was also a break below the 50 percent Fibonacci retracement level of the last wave from the $454.86 low to $590.15 high. Overall, the current price action is increasingly bearish below the $550.00 pivot level.
On the upside, an initial resistance sits at $530.00, above which, there is a bearish trendline with resistance at $550.00. To sum up, Ether’s price is at risk of more declines unless buyers succeed in pushing ETH/USD back above the $550.00 level.