Ether failed to accelerate above $420.00 against the US dollar. Both ETH/USD and ETH/BTC may continue to decline in the near term.
Ether’s price recovered further but it failed to break a crucial resistance at $420.00 against the US dollar.
ETH/USD faced a major hurdle near a bearish trendline with current resistance at $405.00 on the 6-hour chart.
ETH/BTC is still below the 0.0550BTC pivot level and it remains at risk of more losses.
Technically, the 6-hour chart indicators are moving lower in the bearish territory.
ETH/USD Struggles to Recover
Yesterday, we discussed the importance of $420.00 resistance. ETH/USD did trade higher toward that level but failed to break it. As a result, there was a downward reaction and the pair moved below $400.00.
Similarly, there was no upward movement in ETH/BTC. The pair is struggling to hold the 0.0550BTC pivot level and it could decline further.
Looking at the 2-hour chart of ETH/USD, the pair faced a crucial resistance near $420.00, which buyers could not push beyond. Ether fell, breaking the 23.6 Fibonacci retracement level of the last leg from the $359.33 low to $419.38 high.
More importantly, there was a breach of a bullish trendline with support at $400.00. It seems like the pair is heading toward the range support around the $365.00 level. An intermediate support is the 61.8 Fibonacci retracement level of the last leg from the $359.33 low to $419.38 high at $381.00.
The broken support at $400.00 will most likely act as a resistance today. Above this level, there is a key bearish trendline with current resistance at $405.00 on the 6-hour chart. The same trendline prevented further gains near $419.00 recently and it may continue to do so. Short-term price action still looks a little heavy for Ether.
The MACD is showing bearish signs.
The RSI is now well below 40 with a bearish angle.
Important Support Levels
$370.00 and $365.00
Important Resistance Levels
$400.00 and $405.00
Aayush has spent over seven years as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possess strong technical analytical skills and is well known for his entertaining and informative analysis of the currency and commodities markets. He is a software engineer by profession, loves blogging and observing financial marketsETHNews is commited to its Editorial Policy
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