Technically, the 12-hour chart indicators moved down from the overbought zone.
ETH/USD Must Hold $600
Yesterday, we discussed a few bearish and correction signs on the 2-hour chart of ETH/USD. The pair did correct lower, but the downward wave extended below a key support at $650.00.
Moreover, there was a sharp downward correction in ETH/BTC. The pair declined and broke the 0.0720BTC and 0.0700BTC support levels. The next supports are at 0.0680BTC and 0.065BTC.
Looking at the 2-hour chart of ETH/USD, it seems like the pair formed a short-term top at $711.49. It declined aggressively, breaking the $650.00 support and a bullish trendline to move into a bearish zone.
There was also a dip below the 38.2 percent Fibonacci retracement level of the last wave from the $499.28 low to $711.49 high. However, the price is now approaching a significant support above $600.00.
That $600.00 support holds a lot of importance since it acted as a resistance previously and is now close to the 50 percent Fibonacci retracement level of the mentioned last wave.
Moving up to the 12-hour chart of ETH/USD, the pair is testing a crucial bullish trendline with support at $610.00. Thus, the $600.00-610.00 support zone could play an important role in the near term.
A daily close below $600.00 may well push Ether’s price back onto a bearish path. Alternatively, a rejection could start a fresh upward surge toward $650.00 and $700.00. The current price formation is negative on the 2-hour chart, but the 12-hour chart is indicating further gains in ETH/USD.