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. He strives to provide entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession and loves blogging. ETHNews is commited to its Editorial Policy
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