Technically, the 4-hour chart indicators are currently near midlines in the bearish territory.
ETH/USD’s Bounce is Real?
Yesterday, we saw a major downward move in ETH/USD as the pair broke the $520.00 and $515.00 support levels. On a positive note, the pair held the $500.00 support region and started a fresh upward wave.
Conversely, ETH/BTC remained in a bearish zone and is currently testing a major support at 0.0600BTC, which holds a lot of significance in the near term.
Looking at the hourly chart of ETH/USD, the pair dropped to a new weekly low at $507.29 before it found buyers and started a key recovery. The upward move was decent as the price moved above the 23.6 percent Fibonacci retracement level of the last decline from the $590.15 high to $507.29 low.
At the moment, the price is trading near an important bearish trendline with resistance at $545.00. More importantly, the 50 percent Fibonacci retracement level of the last decline from the $590.15 high to $507.29 low is around $548.00.
Lastly, the previous support at $550.00 is now a crucial barrier for buyers. Thus, a break and close above the $545.00-550.00 resistance zone is must for further gains.
The 4-hour chart of ETH/USD also points the importance of $550.00 since there is a breakout pattern in place with resistance near $550.00 and support at $520.00.
In the short term, there could be ranging moves in Ether, but should buyers succeed in pushing the price above $550.00, ETH/USD will most likely stage further recoveries.