Ether is finding it difficult to recover against the US dollar and bitcoin. ETH/USD must move above the $500.00 barrier to stage a decent correction.
Ether’s price remains in a downtrend with resistance at $470.00 and $500.00 against the US dollar.
There is a declining channel forming with resistance near $465.00 on the 2-hour chart of ETH/USD.
ETH/BTC is also in a bearish trend and it could extend declines toward the 0.0520BTC level.
Technically, the 2-hour chart indicators remain in the bearish territory.
ETH/USD Could Bounce
There were further declines in ETH/USD as the pair broke yesterday’s low at $448.05 and traded to a new low at $440.49. It is currently consolidating losses with a minor bullish swing.
ETH/BTC remains in a bearish zone below the 0.0600BTC level. It could extend the current decline toward the next key support around 0.0520BTC.
Looking at the 30-minute chart of ETH/USD, there was a short-term bottom formed at $440.4 before the pair started an upward move and traded above $450.00. There was also a break above the 23.6 percent Fibonacci retracement level of the last drop from the $495.00 swing high to $440.49 low. It is currently following a bullish trendline with support near $454.00.
On the upside, there is a major resistance forming near the $470.00 level. It prevented gains on many occasions and it will most likely continue to do so.
A successful close above the $470.00 resistance could push the price toward the next hurdle at $500.00. An intermediate resistance is around the 50 percent Fibonacci retracement level of the last drop from the $487.00 swing high to $440.49 low.
Moving up to the 2-hour chart of ETH/USD, there is a declining channel with resistance around $460.00-465.00. A bearish break below the $450.00 level will most likely ignite a fresh downward wave toward $440.00 and $420.00.
Important Resistance Levels
$470.00 and $500.00
Important Support Levels
$450.00 and $440.00
The RSI is moving higher from the oversold levels.
The MACD has slightly recovered in the bearish zone.
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial marketsETHNews is commited to its Editorial Policy
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