Technically, the 2-hour chart indicators are now placed in the extreme oversold territory.
Ether Price Analysis
Yesterday, we discussed an important support at $660.00 on the 2-hour chart of ETH/USD. The pair failed to hold the mentioned uptrend support and declined sharply toward the $580.00 handle.
Similarly, there was an increase in selling pressure on ETH/BTC. The pair traded lower and broke two key supports at 0.0820BTC and 0.0800BTC to move into a bearish zone.
Let’s start with the 12-hour chart of ETH/USD to understand the recent decline. The pair topped out at $833.91 before following a slow and steady declining path. The price action was stable until the pair broke a connecting bullish trendline on the same chart with support at $680.00.
It opened the doors for bearish moves, and Ether’s price declined below a crucial uptrend support at $640.00. It is currently approaching another important support at $600.00, which is likely to stop the current downward move.
Should Ether buyers fail even to defend $600.00, it could be seen as a strong bearish signal. The next supports in the stated scenario could be $525.00 and $500.00.
To the topside, there is a bearish trendline with resistance at $700.00. Therefore, the price must move back above $700.00 to kick-start a fresh bullish wave in the near-term. Dropping down to the 2-hour chart, there are back-to-back red candles, signaling a strong selling pressure.
The recent low is $609.92 and the price is currently consolidating losses due to oversold conditions. Ether may well consolidate above the $600.00 support for a few sessions before making the next move either above $640.00 or toward $550.00.