Technically, the hourly chart presents a neutral-to-bearish stance with a downward direction.
Ether Price to Dip and Bounce?
Ether remains on the back foot due to its struggle to break the $54 resistance against the US Dollar. However, the demand cluster could easily keep the ETH/USD pair above the $50 handle.
Similarly, the ETH/BTC pair struggled to remain above 0.055BTC, and moved towards 0.050BTC. A break below 0.050BTC might escalate downside push in the near term.
Despite the strong bounce from the $48 low in ETH/USD, there was no push above $54, as Ether price failed many times near $53.70. Looking at the hourly chart, it looks like there is a double top pattern formed near $53.70.
The price is already moving lower, and broke a bullish trend line support at $52.10. More importantly, the price is attempting a close below the neckline (double top) support at $52.00. If there is a close, there can be a downside extension towards $50.20 to complete the pattern.
The $50.20 support is crucial, representing the 50% Fibonacci retracement level of the last wave up from $48.02 to $53.71 high. So, even if the price moves down towards $50.20 or $50, it remains supported.
Ether buyers should also keep a close watch on the 6-hours chart since there are two monster bullish trend lines positioned at $50.50-50.00. They might prove significant and produce a bounce going forward.
On the upside, a break above $54 is needed to overcome the current short-term pressure. In the worst case scenario, if Ether price drops below $50, it might ignite further losses.