Technically, the 12-hour chart indicators are testing midlines in the bullish territory.
Can ETH/USD Hold $700?
The past three sessions were bearish as there was a sharp downward correction in ETH/USD from the $833.91 high. The pair declined by more than $100.00 and tested a major support at $700.00.
Additionally, there was an increase in selling pressure on ETH/BTC. The pair started a fresh bearish wave and declined below a key support at 0.0800BTC, opening the doors for a test of 0.0750BTC.
Looking at the 2-hour chart of ETH/USD, a correction wave initiated from the $833.91 high. The pair traded lower and broke a key connecting bullish trendline with support at $755.00. The price dropped sharply and cleared the 50 percent Fibonacci retracement level of the last wave from the $628.76 low to $833.91 high.
The last 3-4 candles indicate a rise in selling pressure on Ether, but the current wave can be considered as a part of a downward correction. Ether’s price is currently testing a crucial bullish trendline with support at $700.00-705.00 on the 12-hour chart.
Should buyers fail to defend further losses below $700.00, the price could test the 76.4 percent Fibonacci retracement level of the last wave from the $628.76 low to $833.91 high at $676.00.
More importantly, a 2-hour close below the $700.00 support will most likely push Ether into a short-term bearish zone. On the flip side, a successful rejection from the stated support may perhaps complete the current correction wave and start a fresh uptrend.
An initial resistance is at $730.00, followed by the $750.00 level (previous support).