Technically, the 2-hour chart indicators are back in the bullish territory with a few positive signs.
ETH/USD Could Slowly Move Higher
Yesterday, we saw how ETH/USD trimmed almost all gains and traded below $405.00. The pair declined further, but the $390.00 area acted as a strong support.
On the contrary, there were further gains in ETH/BTC, and the pair now seems to be approaching the next major resistance at 0.0600BTC. There are supports at 0.0580BTC and 0.0550BTC.
Looking at the 2-hour chart of ETH/USD, the pair declined sharply from the $431.33 high. However, the $390.00 area prevented further losses, resulting in the start of a consolidation phase.
The price is currently consolidating above the $390.00 support with a bullish angle, and is following a major bullish trendline with support at $392.00. There is a key support forming above the $390.00 level, which could result in an ascending wave during the upcoming sessions.
On the other hand, if Ether sellers succeed in pushing the price below $390.00, then the next stop may perhaps be $365.00. Moving up to the 6-hour chart, it seems like ETH/USD is consolidating above the $365.00 support, but the broken support at $405.00 will most likely act as a resistance.
The most important resistance sits around $420.00 and a bearish trendline on the same chart. If ETH/USD buyers can break through $420.00, the pair may possibly head toward $450.00 before eventually testing the $500.00 handle.
On the downside, $390.00 now becomes an immediate support. If cleared, it could drag Ether back toward challenging the $365.00 support.