Technically, the 4-hour chart indicators are signaling bearish continuation in the near term.
Can ETH/USD Hold $650?
Yesterday, we discussed the possibility of a bearish break below $692.00 in ETH/USD. The pair did descend, broke the $676.00 range support, and almost tested $650.00.
Similarly, there was a short-term bearish reaction in ETH/BTC. The pair failed to break the 0.0850BTC resistance and started a downward correction toward the 0.0820BTC support.
Looking at the 4-hour chart of ETH/USD, it seems like every recovery was capped by two bearish trendlines with current resistance around $710.00. The pair is now trading well below the $700.00 pivot level, which is a bearish sign.
On the downside, the $650.00-655.00 support region holds a lot of importance. Should sellers succeed in pushing the price below this, there could be heavy declines in Ether toward $620.00 or even lower.
On the other hand, a successful 4-hour close above the trendlines and $712.00 may well clear the path for buyers to push the price toward $750.00 and $800.00. Dropping down to the 30-minute chart of ETH/USD, the pair is currently in a slow and steady recovery mode from the $657.71 low.
To the topside, the previous support at $695.00 and a bearish trendline at $688.00 are likely to act as resistances. The current price action is slightly bullish on the 30-minute chart, but Ether may be looking for a new direction heading into the weekend.
The low for the week at $657.71 is an immediate short-term support ahead of the all-important $650.00. Resistances from here come at $688.00, followed by $695.00 and $700.00.