Technically, the hourly chart indicators are showing a few signs of a recovery in the bearish territory.
Ether Price Analysis
Yesterday, we witnessed a heavy downward move below the $500.00 handle. ETH/USD declined more than 10 percent and tested the monthly low at $450.60.
ETH/BTC also faced an increased selling pressure and declined toward the 0.0750BTC support. The pair is currently consolidating losses with resistances at 0.0780BTC and 0.0800BTC.
Looking at the hourly chart of ETH/USD, there were many back-to-back red candles, indicating a strong bearish bias below $525.00. The pair settled below the $500.00 handle and revisited the last swing low at $450.00.
Ether buyers successfully defended more declines and the price started consolidating losses. The price corrected higher and tested the 23.6 percent Fibonacci retracement level of the last drop from the $544.81 high to $450.58 low.
However, there is a major resistance near $480.00 and a bearish trendline on the same chart. A successful break above this could push the price toward the next trendline at $490.00. If the price rises above that, Ether will most likely stage a solid comeback.
The 6-hour chart of ETH/USD suggests that the $450.00 support holds a lot of importance. Should there be a bearish break below this, the price may well accelerate declines toward $400.00 in the near term.
The current wave structure indicates that the price is in the third wave from the $615.89 high, which should end below the $450.00 low. On the flip side, there is a RSI divergence forming on the same chart, signaling an upward wave.
To sum up, there are many conflicting signals on the charts. Therefore, the next move depends on whether Ether holds the $450.00 support.