Technically, the 6-hour chart are starting to move down, and signaling a possible downside move.
Ether Price Edging Lower
Ether erased most of its recent gains against the US Dollar and Bitcoin during the past two days, as it moved down. The ETH/USD pair fell below $50 to trade as low as $46.42 recently.
The ETH/BTC pair performed even worse, as it declined from 0.055BTC to 0.045BTC, weakening by more than 15%. An increase in buying interest for Bitcoin also prompted weakness in Ether in the short term.
Let’s start with the hourly chart of ETH/USD. Yesterday, the pair failed to correct higher, and declined further below $48. A new weekly low was formed at $46.42 from where the pair started correcting higher.
At the moment, the pair is trading below two bearish trend lines with resistance at $50 and $50.10. As long as the price is below the mentioned resistance levels, there can be additional losses. The $50 resistance area also represents the 38.2% Fibonacci retracement level of the last decline from the $53.71 high to $46.42 low.
A break and close above $50 is needed if Ether has to overcome the current bearish pressure. On the downside, there is a connecting bullish trend line formed with support at $49. It’s not important, but might help the price in the short term.
The most significant break is visible on the 6-hour chart of ETH/USD. The pair has breached a major bullish trend line with support at $50.00. The worst thing is a daily close below $50.
It means the price is really struggling to hold gains, and might decline further if it does not move back above $50 anytime soon. On the downside, the next most important support is seen at $45-46.