Technically, the 2-hour chart indicators are currently in oversold levels.
Ether Price Analysis
The past five sessions were very bearish as ETH/USD declined below a few key support levels such as $550.00. The pair traded toward the $500.00 handle, which is a major support and it held the recent losses.
ETH/BTC saw a minor increase in selling pressure, but declines were limited since the price of bitcoin also fell heavily against the US Dollar.
Starting with the 6-hour chart of ETH/USD, there was a rejection from a connecting bearish trendline with resistance at $610.00. The pair fell sharply and broke the $580.00 and $550.00 support levels. A new monthly low was formed at $503.27 before buyers took a stand.
The pair is currently consolidating losses and is correcting higher above $510.00. It seems like the price is forming a double bottom pattern near the $505.00 level. Should the price bounce back, it could correct toward $550.00 and the 38.2 Fibonacci retracement level of the last decline from the $628.21 high to $503.27 low.
Above $550.00, the price may perhaps move back in a positive zone toward the 50 percent Fibonacci level of the last decline. On the flip side, a failure to recover in the short term could put a lot of pressure on Ether buyers.
An initial support is at $510.00 followed by the recent low of $503.27. Below this, the price may possibly clear the $500.00 handle. Overall, the double bottom pattern with support above $500.00 holds the key for the next move in Ether.