Technically, the 4-hour chart indicators are still seeing oversold conditions.
ETH/USD Remains Bearish
The past few days were quite bearish as ETH/USD extended declines and broke many important support levels, such as $510.00 and $400.00. The pair recently traded to a new yearly low at $365.14 and it is currently correcting higher.
On the other hand, ETH/BTC started an ascension after a significant downward wave. The pair is currently trading above the 0.0550BTC level, which is a positive.
Looking at the 4-hour chart of ETH/USD, there are many bearish signals which indicate a significant downtrend from the $590.00 swing high. More importantly, the recent break below the $400.00 pivot level could further add to the bearish pressure.
The pair is currently correcting higher from the recent low of $365.14 but there are many resistances, starting with $410.00. Additionally, there are two bearish trendlines forming with resistance at $410.00 and $450.00.
It seems like the $450.00 level is now a crucial barrier for a major correction in Ether’s price. Moving down to the hourly chart of ETH/USD, the pair is currently testing a bearish trendline with resistance at $400.00.
A close above $410.00 could lead the way toward the all-important $450.00 level. On the downside, the recent low of $365.14 is a short-term support, a break below which would signify further declines.