Technically, the 30-minute chart indicators are recovering from the extreme oversold levels.
Ether Price Analysis
In the weekly analysis, we discussed that ETH/USD is at risk of further losses. The pair did move down and broke a key support area at $550.00. It traded close to the $500.00 handle and formed a new monthly low at $505.69.
Ether came under pressure versus bitcoin as well, resulting in a sharp downward move in ETH/BTC. The pair broke a major support at 0.0750BTC and tested the 0.0720BTC support zone.
Looking at the 2-hour chart of ETH/USD, the pair struggled to move above $600.00-610.00 and traded lower. The decline was such that the pair even cleared a significant support near $550.00.
Ether’s price dropped heavily and a large bearish candle was formed on the same chart. After trading as low as $505.69, the price started an upward correction and recovered above the 23.6 percent Fibonacci retracement level of the last drop from the $574.43 high to $505.69 low.
Dropping down to the 30-minute chart of ETH/USD, there is a short-term resistance formed at $540.00 and the 50 percent Fibonacci retracement level of the last drop from the $574.43 high to $505.69 low. A close above this could push the price toward a connecting bearish trendline with resistance at $560.00.
An intermediate important resistance is at $550.00 (previous key support). On the downside, there is a decent support at $520.00, below which Ether’s price could test the $500.00 support zone. The overall price structure remains bearish as long as the price is below $550.00-560.00.