Technically, the daily chart indicators are flat in the bearish territory with consolidation signs.
Can ETH/USD Recover Above $550 and $620?
This past week was mostly bearish as ETH/USD declined to a new yearly low at $454.86. The pair remains in a bearish zone and is currently holding a major support area near $500.00.
Similarly, ETH/BTC declined heavily this past week and settled below the 0.0650BTC support. The pair is now trading near a key pivot at 0.0600BTC with resistances on the upside at 0.0620BTC and 0.0650BTC.
Let’s start with the daily chart of ETH/USD to understand the current trend. It seems like the price topped above the $1,400.00 level and started a downward move. During the decline, it broke a few important supports such as $1,000.00 and $750.00.
Looking at the technical structure, there is a five wave pattern in place from the $1,422.8 high. The price is currently in the fifth wave which could complete anywhere around the $450.00-500.00 zone.
To start a fresh uptrend, Ether must surpass a significant bearish trendline with a current resistance at $620.00. A successful close above that trendline resistance will most likely push the price back in a positive zone toward $750.00 in the near term.
On the downside, if the mentioned fifth wave is not complete at $454.86, there may perhaps be further declines with possibilities of a new low below $454.86.
Moving on to the 2-hour chart of ETH/USD, there is a contracting triangle with resistance at $530.00 and support at $500.00. The next break either above $530.00 or below $500.00 should set the path for Ether's next move.
Above $530.00, the next resistances are at $550.00, $590.00 and $620.00. On the flip side, a push below $500.00 could call for a new low below $454.86.