Technically, the daily chart indicators are near midlines in the bullish territory.
ETH/USD Could Bounce Back
This past week, there was a sharp U-turn in ETH/USD from the $800.00 handle. The pair declined sharply and settled below a major support level at $700.00 to move into a bearish zone.
On the flip side, ETH/BTC remained in a bullish zone above 0.0800BTC. There was a downward correction, but buyers were successful in defending losses above 0.0750BTC. The pair remains supported above 0.0800BTC and 0.0780BTC for more upsides.
Looking at the daily chart of ETH/USD, there was a rejection pattern formed above $800.00. The pair declined by more than $100.00, with a daily close below a crucial support at $700.00.
During the decline, there was a break below a key bullish trendline with support at $725.00. More importantly, Ether’s price traded below the 23.6 percent Fibonacci retracement level of the last wave from the $359.33 low to $833.91 high.
However, the downward move was protected by the $640.00 support. A low was formed at $638.63 before the price started an upward correction with consolidation moves.
The 2-hour chart of ETH/USD indicates that the price is consolidating losses above $640.00 coupled with a short-term bullish pattern. To the topside, the pair must clear the $700.00 resistance (previously support) to accelerate recovery toward the next hurdle for buyers near $750.00.
On the downside, the recent low of $638.63 is an important support. Should there be a break and it closes below $640.00, Ether could test the next major support at $600.00.
To summarize, Ether’s price may well face a strong barrier near $700.00 during the current recovery. There might be ranging moves above $640.00 before the next move either above $700.00 or toward $600.00.