Technically, the daily chart indicators have reached oversold conditions in the bearish territory.
ETH/USD Remains at Risk of More Losses
There was a major downward move in ETH/USD from the $590.00 swing high during the past week. The pair traded lower and broke many key supports, including $510.00, $450.00 and $400.00.
ETH/BTC also faced a lot of selling pressure and declined well below 0.0550BTC. It later found support around the 0.0500BTC level and started an upward correction. Resistances on the upside await at 0.0580BTC and 0.0600BTC.
Let’s look at the daily chart of ETH/USD to understand the current trend and price movement. The chart suggests a clear downtrend from the $1,000.00 pivot level. The pair declined and moved below the $750.00, $500.00 and $400.00 support levels.
It traded as low as $365.14 before forming a small green candle. The turnaround indicates that Ether’s price may correct higher in the short term. It recovered a few points recently and tested the 23.6 percent Fibonacci retracement level of the last drop from the $590.15 swing high to $365.14 low.
Above $420.00, there are two important bearish trendlines forming with resistance near $520.00 and $620.00. An intermediate resistance awaits around the 50 percent Fibonacci retracement level of the last drop from the $590.15 swing high to $365.14 low near $477.00.
Moving on to the 2-hour chart of ETH/USD, there is a contracting triangle pattern forming with resistance near $405.00. A successful break and close above $405.00 could open the doors for more gains in the short term.
On the flip side, an initial support sits at $380.00, followed by the $365.00 level. Should there be a break below $365.00, the price may decline toward $320.00.
The medium-term price action is still bearish, and short-term recoveries are likely to face resistance near $417.00, $477.00 and $520.00.