Technically, the indicators are mild bearish, but with no major sign of a major decline.
Can Ether Price Gain Strength?
This week started with a minor increase in selling pressure, as both ETH/USD and ETH/BTC declined a few points. It was mostly ranging with a slight downside bias for ETH/BTC, but ETH/USD declined by roughly 2.5%.
The 30-min chart clearly highlights the recent decline from the $45.18 high. The pair consistently faced offers and moved down towards $42.50. It is currently finding bids near $42.50, and may attempt a bounce back soon.
It looks like there is a breakout pattern (triangle) formed on the chart with resistance at $43.00 and support at $42.50. If the $42.50 support manages to contain further declines, there is a chance of ETH/USD piercing the triangle resistance at $43.00 for a fresh upside wave.
An initial resistance in that case would be around the 50% Fibonacci retracement level of the last decline from the $45.18 high to $42.56 low.
To understand the price action better, let’s move to the 2-hour chart. There is a bearish trend line formed with resistance at $44.00, and a clear crucial support at $41.10.
It looks like the price is currently in the 4th wave, which might end anywhere near the $42.00 mark. Once it completes, there is a real chance of Ether price starting an upside move as a part of the 5th wave.
However, the mentioned scenario would be invalidated if the price moves down below the last swing low of $41.12. It’s wise to keep a close watch on the highlighted support area at $41.12 in the near term.